STATE FOREST SERVICE REPORT FOR THE YEAR ENDED 31st MARCH, 1921.

Appendix to the Journals of the House of Representatives, 1921 Session I-II, C-03

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Session II 1921. NEW ZEALAND.

STATE FOREST SERVICE REPORT FOR THE YEAR ENDED 31st MARCH, 1921.

Presented to both Houses of the General Assembly by Command of His Excellency.

The Director of Forestry to the Hon. the Commissioner of State Forests. Wellington, Ist August, 1921. Sir,— I have the honour to submit herewith a report on the work of the State Forest Service for the year ended 31st March, 1921. I have, &c, Ij. Macintosh Ellis, Director of Forestry. The lion. Sir F. H. D. Bell, K.C.M.G., K.C.

CONTENTS. PAGE PAGE Chapter I.—Progress of New Zealand Forestry .. 1 Chapter IV.—Research and Experiments— Chapter ll.—The State Forest Service .. ..3 Forest Economics .. .. .. ..8 Chapter lll.—The State Forests— Forest-management .. .. .. .. 9 Constitution of State Forests .. .. .. 3 Chapter V.—General— Finance .. .. .. .. .. 4 Timber Trade Conditions .. .. 10 Management— Empire Forestry Conference .. .. 11 Timber .. .. .. .. ..6 Forest Atlas.. .. .. .. ..12 Grazing .. .. • • .. .. 7 Forest Service Library .. .. 12 Game and Recreation .. .. .. 7 Chapter Vl.—Recommendations .. 12 Forest-protection .. .. .. 7 Annexures .. .. .. .. ..13 Afforestation and Forest-extension .. .. 8 CHAPTER I.- PROGRESS OF NEW ZEALAND FORESTRY. New Zealand is now in the third " forestry boom," the first one dating back to the year 1874, when the self-same symptoms and fears of timber famine were expressed as are being voiced at the present time. The positions are parallel, but with the important difference that to-day the Parliament, Press, and people are beginning to appreciate the meaning of timber-conservation and national forestry. This growing interest has found expression during the jyear in a definite forest policy, the creation of an administrative instrument, the Forest Service, and the additional dedication to technical management of forest and woodlands which now bring the total up to 6.800,000 acres. The year under review may be considered as the year of stocktaking, of orientation, and of study of the conditions and problems incident to a sound and businesslike administration, and of the procedure and modus operand} necessary to forest-management. The year ending 31st March, 1922, will be known as the year of establishment and of application, whilst the year ending 31st March, 1923, may be known as the year of fruition and results.

PAGE PAGE Chapter I. —Progress of New Zealand Forestry .. 1 Chapter IV.—Research and Experiments— Chapter ll.—The State Forest Service .. ..3 Forest Economics .. .. .. ..8 Chapter lll.—The State Forests— Forest-management .. .. .. .. 9 Constitution of State Forests .. .. .. 3 Chapter V. —General— Finance .. .. .. .. .. 4 Timber Trade Conditions .. .. 10 Management— Empire Forestry Conference .. .. ..II Timber .. .. .. .. 6 Forest Atlas.. .. .. .. ..12 Grazing .. .. • • • • .. 7 Forest Service Library .. .. 12 Game and Recreation .. .. .. 7 Chapter VI. —Recommendations .. 12 Forest-protection .. .. .. ..7 Annexures .. .. .. .. ..13 Afforestation and Forest-extension .. .. 8

CHAPTER I.- PROGRESS OF NEW ZEALAND FORESTRY. New Zealand is now in the third " forestry boom," the first one dating back to the year 1874, when the self-same symptoms and fears of timber famine were expressed as are being voiced at the present time. The positions are parallel, but with the important difference that to-day the Parliament, Press, and people are beginning to appreciate the meaning of timber-conservation and national forestry. This growing interest has found expression during the jyear in a definite forest policy, the creation of an administrative instrument, the Forest Service, and the additional dedication to technical management of forest and woodlands which now bring the total up to 6,800,000 acres. The year under review may be considered as the year of stocktaking, of orientation, and of study of the conditions and problems incident to a sound and businesslike administration, and of the procedure and modus operand} necessary to forest-management. The year ending 31st March, 1922, will be known as the year of establishment and of application, whilst the year ending 31st March, 1923, may be known as the year of fruition and results.

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During 1920-21, a study was made of the quantity and distribution of the indigenous forests of the State; of afforestation activities; of New Zealand methods of forest administration and application by the Lands Department; of the sawmilling industry, domestic consumption and exportation of timber ; of the silvioal and ecological problems attendant on the regrowtli of the indigenous forests, and of many other factors incident to timber and timber use. The period April to August was spent by the writer in studying forest milling and industrial woodconsumption throughout the Dominion. In September a comprehensive survey traversing the whole field of forestry and forest activities was prepared and presented to the Minister in Charge of Forestry. After a deliberate consideration of the report a plan of administration was approved and steps were t;iken to bring into being the State Forest Service. The central management and administrative control of the service briefly consists of the Director of Forestry (assisted by the Chief Inspector) and the Secretary, with offices at Wellington. As decentralization and efficient stewardship go hand in hand it was decided to establish seven forest-conservation regions, each in charge of a competent regional executive, the Conservator of Forests. The conservation region is divided into several ranger districts, each in charge of a Forest Ranger who functions as local executant as regards cruising and appraisal of timber-sales, trespass, forest-protection, and generally all activities relating to the State forests. Provision was also made for the appointment of an Engineer in Forest Products, a Milling Expert, Surveyors, and the necessary clerical assistance. It was not until the end of the year that the necessary appointments were made. At that time a Conservator of Forests was appointed for the Auckland, Rotorua, Westland, Canterbury Otago, and Southland Regions. Owing to financial difficulties the posts of Conservator of the Wellington and Nelson Marlborough Regions were held in abeyance. Forest Rangers to the number of twenty-four were appointed to various forest districts throughout the Dominion, and the posts of Engineer in Forest Products, Milling Expert, and Land Surveyor were filled. The necessary forest clerks were also secured and assigned to the Conservators' offices. The Forest Service has been fortunate indeed in securing from a wide range of applicants a very fine personnel, and it is hoped that the high standard of efficiency that has been set and inaugurated will be continuously maintained. In January the Minister in Charge of Forestry presented to the public a statement of forest policy by the execution of which it is hoped to attain the conservation and reasoned use of our visible timber-supplies and the perpetuation of the use of the national forest estate for future generations. This policy is based on the conviction that the forests of New Zealand are for the use of the people of New Zealand, and that while the present is entitled to the fullest economic use of this resource it behoves the present to so handle this heritage that the rights of posterity are safeguarded. The policy briefly calls for — (I.) Permanent dedication to Forest management of all Crown forested lands chiefly valuable for forestry and timber-production, and the deletion from State forests of all lands chiefly valuable for agricultural purposes as soon as possible : (2.) The subjection to scientific Forest management of all State forests, and the placing of same on a sustained-cut basis : (3.) Establishment of protection forests at the head-waters of streams, on water-supply basins, &c. : (4.) Application of an efficient scheme of forest-protection to State forests : (5.) The gradual building-up of an efficient administrative instrument -the State Forest Service : (6.) Establishment of a School of Forestry for the training of forest technicians : (7.) Promotion of forest research : (8.) Forest-extension by the State planting in those regions where demonstrated results are best and the local needs most urgent: (9.) A progressive timber-sale policy : (10.) Decentralization, and the settlement of all local questions by local officers. This expression of policy, which has been very well received by producers, consumers, and the general public, forms a splendid base upon which to build the new Forest Act so urgently required. The National Forest Estate. The forest reconnaissances which were made during the year, of the mountainous backbone of the North Island from the East Cape to Parks Peak, and of the eastern slope of the Southern Alps, emphasize the grave danger of opening up to reckless settlement the high forested uplands and wooded ranges of the Auckland, Taranaki, Wellington, Hawke's Bay, Nelson, Marlborough, Westland, Canterbury, Otago and Southland Provinces. The vital social interests of New Zealand, her national welfare and economy, demand the reservation from further devastation and destruction of all the hundreds of thousands of acres of these protection forests. Surely this beautiful Dominion does not mean to repeat the history of Mesopotamia, Greece, Italy, Spain, France. Portugal, China, and other countries in pastoral and agricultural disaster ? The lime to begin rational forest-management is when you have forests to start with. "Do not lock the stable-door after the horse is stolen." There are at least 4,000,000 acres of undedicated Crown and Native forest land that should be subjected to rational conservation, reasoned use, and silvioultural control in the interests of the national well-being.

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CHAPTER .11. Till] STATE FOREST SERVICE. During the year a complete revision of the remuneration and grading of the Service personnel was accomplished. The scale of salaries and allowances paid to the public servants engaged on responsible activities of forest extension was absurdly low when compared with operations of an equivalent value and responsibility in other branches of the New Zealand Public Service and in other countries. These unequal conditions were remedied, appropriate classifications were established, and to-day it may be said that the salaries and status of the Forest officers are on a basis commensurate with their duties, responsibilities, and obligations. The writer is confident that the standard of efficiency now prevailing in this instrument of State business is equal to that of the best commercial standard in this or any other country. But the State must be prepared —if it expects to have this high level maintained —to pay for their devotion, loyalty, and efficiency just as commercial organizations must pay for it. The augmented staff of Forest officers concerned with the management, protection, and development of the indigenous forests has begun work with enthusiasm and determination. It is to be hoped that as the knowledge, experience, and effectiveness of that Forest Service staff increases to greater usefulness the " go-getters " will be substantially recognized before they are lost to the Public Service. The following table shows the Forest Service organization at the 31st March, 1921 : —

Forest Service Organization.—Distribution of Total Force, New Zealand State Forest Service, at 31st March, 1921.

CHAPTER 111. THE STATE FORESTS. 1. Constitution of Statu Forests. The area of State forests, 1,666,302 acres, was increased by 20,111 acres during the year, making a total of 1,668,319 acres ; while the area of provisional State forests, which embraces 3,293,372 acres, was increased by the dedication of 1,840,321 acres to a total at the 31st March, 1921, of 5,134,651 acres. Not one acre of Crown forest lands has as yet been dedicated provisional State forest under the; empowering legislation of 1918 in the land districts of Wellington and Canterbury, although there are several hundred thousand acres of forest areas that might be profitably gazetted as such. The grand total area of State forests and provisional State forests that is now under the management of the Forest Service is 6,802,970 acres, or 10-3 per cent, of the superficial area of the Dominion. The systematic investigation of this acreage will disclose the fact that at least 50 per cent, of the area can only be classified as protection woodland and subalpine scrub. Forest Reconnaissance of the Eastern Slope of the Southern Alps. During the year a general forest reconnaissance was made of the forested lower slopes of the eastern side of the Southern Alps from Te Waewae Bay, through Southland, by Lake Wakatipu, through Otago, Canterbury, and to the headwaters of the Wairau River in Marlborough. The purpose of this survey was to determine the general quantity and quality of the forest growth, the damage by fire, agencies causing same, methods of control, extent and effect of grazing, regional distribution of the various forest groups, and the relation,of the upper watershed forests to the water resources of the plains of Canterbury and Southland. This survey demonstrates the serious influence of upland deforestation as regards hydro-electric development, irrigation needs, municipal water-supply, regulation of stream-flow, and stabilization of the climatic balance on the lower fertile plains. There are over 330,000 acres of undedicated protection forest which should be proclaimed State forest and brought under the Forest Service control. The future well-being of the eastern side of the South Island requires that all the residual upland forests be saved from, further denudation and destruction without delay.

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Forest-conservation Region. o o I 2 a 8 u o o a, | .2 o : **h I j§ « I & a S ! § 1 I « i ° sfl -1 -J «-2 O J S3? t> to "5 O _ <D t! £ o3 0 o O ts I h oo u d a e no g e S3 h 60 -° e § w 53 ca Ii3 s o I 3 p C5 I 53 Q W I 5 3 0 S CD p <d B Total. CO C c Aih'kland Rotorua . . Wellington Nelson Westland Canterbury-Otago .. Southland Central Office 1 1 I .. .. I 3 1 1 1 1 1 3 ] I ..2 1 1 12 I 1 1 2 1 I 2 1 3 6 3 r > 4 2 4 4 3 2 1 8 20 6 7 7 18 7 24 3 7 1 1 1 2 I 1 5 Total 1 1 1 5 2 12 23 2 1 2 5 9 27 7 10 2 1 97

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Forest Reconnaissance of the Huirarau-Raukumara Ramies. A general forest reconnaissance was made of this mountainous backbone during the year. The purpose was to ascertain the economic relation of the forests of this important massif to the prosperous and populous Hawke's Bay, Gisborne, and Bay of Plenty districts. The investigators report: " In this region the effects of the removal of the forest cover are so apparent that the value of the forests as protective agents is stressed, and in order to prevent further irremediable damage the remaining areas under forest cover should be maintained as permanent State forests." The prevention of slips and landslides, silting and blocking-up of rivers and harbours, the washing-away of fertile plains, if nothing else, demand the conservation in perpetuity of these widespread protection forests. Your Director seriously recommends the dedication without delay of 600,000 acres of protection and commercial forest to permanent Forest control, in and through the counties of Whakatane (including 250,000 acres in the Urewera), Opotiki, Waiapu, Waikohu, and Wairoa primarily in Hie interest of the depending agricultural communities,- as well as in the interest of subordinate timbersupplies. Kauri Park — a National Souvenir. During the year negotiations were practically completed for the acquisition of 908 acres of kauri forest near Dargaville from Mr. James Trounson. The grateful appreciation of the people of New Zealand is due to this gentleman for the exceptional terms upon which he has sold this magnificent forest to the Crown. It will stand for centuries as a glorious but vestigial souvenir of what was once a great example of Nature's handiwork —the unequalled kauri forests of the North. Gone for ever is this great heritage of the people, sold and destroyed for a mess of pottage. Let this remnant stand as a reminder of how not to use our remaining forest wealth. 2. Finance. State Forests Account. —Receipts and Payments Account at 31st March, 1921. £ s. d. £ s. d. £ s. d. To Cash in hand, Ist April, 1920 .. .. .s,i>l(> 18 7 By Interest on debenture! .. .. 6,126 (> 7 Loan Account — Debentures issued .. 70,000 0 0 Afforestation: Nurseries Revenue from State forests, provisional and plantations— State forests—Rents, royalties, &o. .. 16,816 8 r> Materials, buildings, plantRevenue from nurseries and plantations - ing, &c. .. .. 49,320 II 7 £ s. d. Fxtension of nurseries and Trees .. .. .. 913 7 II plantations .. .. 167 (i 0 Firewood and poles .. 1118 2 2 Expenses of survey .. 250 0 o Seeds .. .. .. 150 8 7 49,733 17 7 Sheep, wool, skins, and State forests— grazing .. .. (559 4 9 Management expenses .. 2,701 II 11 Rental of departmental Forest reconnaissance .. 317 19 4 houses .. .. 052 15 8 Kauri-gum, expenses of Sundries .. .. 8 17 ti collection .. .. 100 0 10 2,702 10 7 Collection of tree-seeds.. 9 17 4 Nurseries and plantations— Survey of Trounion's Prooeeds of sale of horses .. .. 179 0 0 kauri forest.. .. 81 17 4 3,210 18 9 Administration and sundries— Salaries and allowances 17,594 18 .'! Temporary clerical assistance .. .. 4o<> 19 0 Travelling-expenses .. 2,174 13 3 (Iffioe furniture, technical instruments . . 3,852 19 li Typewriters, p " to h ase and maintenance ■. 21ti 14 6 I lent .. .. 700 12 9 Hooks, advertising, light, and cartage.. .. 297 17 8 Telephones, teleg t a in s, and postages .. 409 8 7 Motor-vehicles, purchase ami maintenance .. 121 9 2 Specimens of New Zealand timber.. .. 55 0 li Cost of printing Sir- I). II iltcllins's report, less sales .. .. 481 12 1 Silvicultural and ecological Investigations .. 108 5 l 20,(>01> 10 li Cash at 31st March, 1921 , In Public Aooounl . . 9,484 12 5 imprests outstanding .. 51 17 9 9,636 Id 2 £95,214 3 7 £95,214 3 7 L. Maclntosii Ellis, Director of Forestry. A. \Y. Gyles, Accountant. The statement has been examined and agrees with the total receipts and expenditure as disclosed by the Treasury accounts. —Robert J. Collins, Controller and Auditor-General. sth October, 1921.

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Statu Pobbsts Account.—Loan Account at 31st March, 1921. To Local authority £ i By Debentures issued £ Section 50, Finance Ad, 1916 .. .. 50,01111 1916 17 Seotion 50, Finance Act, 1916 .. 10,000 Section 32, Finance Act, 1018 (No 2) .. 2(io,()()(i 1917-18—Seotion 50, Finance Act; 1916 .. 28,100 Seotion 16, Finance Act, 1920 .. .. 250,000 1018 19— £ Section 50, Finance Act, 1916 11,900 Section 32, Finance Act, 1918 (No. 2) .. .. .. 15,000 26,000 1919-20— Section 32, Finance Act, 1918 (No. 2) .. 65,000 Section 32, Finance Act, 1918 (No. 2) . . 70,000 200,000 Balanoe of authority at 31st March .. 300,000 £500,000 £500,000 The forest revenue credited to the State Forests Account in the fiscal year 1920-21 was greater by £11,184 than in the previous year, and totalled £19,697. This increase, amounting to 132 per cent, over the last year, is largely due to the return of more stable economic conditions, and increased demand for timber for constructional purposes. A more uniform and appropriate system of mature-timber disposal has been evolved, so that the annual revenues will steadily increase and not show that wild erraticity exhibited in the period 1896-1921. The following table presents a concise summary of the forest receipts from State forests and Crown lands, together with State-forest expenditures. It is evident that while State-forest revenue alone has been insufficient to cover all State-forest expenditure, yet all Crown timber revenues on the average would be more than enough to meet the average outgo : —

New Zealand Forest Finances.

State Forest Service expenditures on analysis show an increase in debenture interest charge (all afforestation expense), a substantial increase in the salary subdivision due to the appointment of regional Conservators of Forests and Foresl Rangers, and a marked increase in general develoi>ment

Near. State Forest Account Revenue. Crown Land 'limber Revenue. Total. State Forest Expenditure, I. 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 19J7 1918 1919 1920 1921 .; £ 2,468 8,504 10,995 5,884 8,845 14,915 17,188 3,870 16,726 12,784 14,385 20,426 18,258 32,619 15,425 14,870 35,193 11,525 11,354 14,732 20,611 12,881 13,299 7,529 8,513 19,697 2,964 7,658 8,574 3,392 11,360 10,177 17,045 15,893 13,739 34,820 40,484 30,203 43,551 20,013 15,649 20,176 24,319 19,280 19,424 13,540 20,853 12,817 10,063 8,115 10,345 25,465 £ 5,432 14,162 19,569 9,276 20,205 25,092 34,233 19,763 30,465 47,604 54,869 50,629 61,809 52,632 31,074 35,048 59,517 30,805 30,778 27,912 51,446 25,698 23,362 15,644 18,858 15,162 £ 481 2,472 5.802 3,340 4,002 6,857 10,334 11,017 15,584 18,675 20,188 24,951 25,831 26,962 22,187 23,446 22,810 22,169 28,442 30,318 30,312 27,089 41,851 41,343 66,819 79,551 26 years 373,141 459,909 459,909 59,909 833,050 833,050 612,833 [ i Average per year for period 1896-1921, inclusive 14,350 17,688 32,040 23,570

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—due to survey, demarcation, and reconnaissance of indigenous forests. It will be seen from the following graph that afforestation absorbs about 80 per cent, of the total outgo. This percentage may be expected to steadily decrease as direct afforestation is supplanted by the regrowth in indigenous forest regions.

Graphic Expose State Forest Service Expenditures for Fiscal Year ending 31st March, 1921.

3. Management. Timber. The centre of forest exploitation in the North Island is moving centripetally to the heart of the Island. From a national timber-supply standpoint the North Auckland, Taranaki, Hawke's Bay, and southern Wellington regions are now negligible, and the ever-increasing wood needs of the Taranaki, Wairarapa, Hawke's Bay, and other districts will he largely supplied during the next generation from the massif bounded on the west by the Main Trunk Railway, on the north by the Waikato and the • thermal-springs country, the east by Lake Taupo, the Urewera country, and the Ahimanawa Range, whilst Taihape will mark the most southern point of this supply area. From this great timberreservoir, which embraces over 3,000 square miles, head out four of the most important rivers of the North Island—namely, the Waikato, Wanganui, Wangachu, and Rangitikei. It is vital for the dual need of timber-supply and water-conservation that proper safeguards be herein established against forest-devastation. This, the last great source of timber, should be subjected to a scheme of forestmanagement whereby it becomes a permanent wood-producing region, and the essential water resources are conserved' and stabilized. At the present time the principal forested lands are under the control of interests other than those whose objective is conservation and rational use. In the South Island there are two forest regions of national importance, and it is to these centres that forest-exploiters are now being attracted. The first and by far the most important is that of the West Coast, where during the past year at least a dozen new mills have been brought into operation.

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From this region will the major needs of Wellington, Nelson, Marlborough, and Canterbury be drawn during the years and generations to come. Fortunately for the Dominion, the chief forests of the West Coast have been proclaimed provisional State forests, and are now being subjected to study and examination preliminary to being placed on a sustained-cut basis. The other forest region of national importance in the South Island is situated in Southland, and in three groups— the Catlin's River country (as yet not dedicated as State forest), the country between Sand hill Point and Puysogur Point (which has been dedicated provisional State forest), and Stewart Island. The aim of the service is to assure the practice of forest-management over these and all Crown forests which are on land chiefly valuable for forestry purposes, and at the same time by rational control of forest-exploitation to secure constant renewal and perpetuation of the resources. The State forests are for use now and are not locked up for future generations. All legitimate demands for standing timber and other forest produce from bona fide operators will always be met fairly and squarely by the State Forest Service. (All information as to suitable milling-areas, &c, will be gladly furnished by any officer of the service.) Grazing. It is apparent that a widespread use is made of the grazing opportunities offered by State forests throughout the country, for many thousand head of cattle and sheep are fed and sheltered in these areas. During the year an investigation was begun into the economic benefits secured by pastoralists through the exercise of this privilege, and also as to the damage or otherwise done to the forests. It has been ascertained that little or no control has been exercised heretofore over stock occupation, nor has the revenue received from the use thereof been anything but negligible. It is proposed to continue the study of the effects of grazing, and to draw up a scheme of grazing-management whereby the objects of forest-perpetuation will be successfully attained, and at the same time a reasonable use of the forests for grazing purposes may be secured. It must be emphasized, however, that grazing within State forests must always be subordinate to the main objects of timber-production. Game and. Recreation. The value of the State forests as production centres for the natural propagation of fur-bearing animals, game, and as recreation playgrounds is just beginning to be appreciated. Plans are being made so that in all timber-sales the natural beauty of the forest scenery is preserved where these timber-sales are situated along highways, bordering rivers, streams, and lakes. Every means will be given to prospective campers, tourists, and travellers to enjoy the recreational resources afforded by the State forests. The increasing economic importance of the opossum indicates that in the protection of this animal in State forests there is a great potential source of revenue. Efforts are being made to co-operate with the Department of Internal Affairs and. the various acclimatization societies in de veloping the possibilities of breeding and harvesting this valuable fur-bearer. (At least ten thousand opossums were taken in 1921 from State forests.) Game-protection has been made one of the regular activities of the field officers of the service, and in order to assist in this all Forest Rangers have been appointed Rangers under the .Animals Protection Act, 1908, and the Fisheries Act, 1908. Forest-protection. The effective protection of the national forest estate against its arch enemy, fire, is the keystone of successful forestry. All the carefully made plans of management, regulation, cut, and exploitation count for nought if the growing forest capital is exposed to destruction by fire. This factor in forestry is as important in New Zealand as elsewhere. Just as soon as exploitation begins in the indigenous forests of this country there marches in that archangel of devastation fire. During the jjast generation two and a half million acres of virgin timber-land has been destroyed, and in its place is useless barren waste- North Auckland, Thames, the central backbone of the North Island, the Nelson and Marlborough Provinces, and the eastern slopes of the Southern Alps. During this year the orgy of destruction was maintained, and well over 50,000 acres of State woodland went up in smoke. Your Director is appalled at the apathy and indifference displayed at this wanton decimation ; apparently " What is everybody's business is nobody's business." It is absolutely essential that this enormous drain—which may be conservatively estimated to result in a loss of £1,000,000 per year —be checked, and at once. Every individual citizen should concern himself and make his interest felt in the protection of New Zealand forests against lire. The whole question may be summed up in a few words : The residual forests must be saved from destruction by fire by vigilant and continuous control, or in a very few years there will be no merchantable timber forests nor young forests for the generations to come. Fire-prevention is the first step to forest-perpetuation. A general survey of the forest-fire situation was made during the year, and during the immediate danger season a provisional plan of protection will be in operation in the forest districts of high fire hazardnamely, North Auckland, the Wanganui River watershed, and Ruahine Range, through Nelson Province, and along the lower eastern slopes of the Southern Alps. Other agencies causing forest-damage are deer and stock. A study of these factors is now under way. and wilhin a. year a satisfactory plan of control will be evolved.

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4. Afforestation and Forest-extension. The details of State planting are given in the following table :—

Summary of Operations on State Plantations during the Year ended 31st March, 1921.

Analysis indicates that the acreage of plantations established this year is the lowest since 1903, whilst the number of trees set out was 833,000 less than in the previous year. 2,900,000 trees were set out —36 per cent, for replacement and 64 per cent, to new ground. The large proportion to replacement was necessary owing to the neglect and disorganization of the war and immediate postwar conditions, such as largely increased plant and material costs, and the unsatisfactory conditions in the labour-market during the year. A general reorganization of the afforestation operations was made late in the year, and the programme developed for the incoming year' already promises most satisfactory and efficient results. The year 1920 marks the withdrawal of prison labour from State tree-planting activities. A lasting monument of achievement has been established by the prison tree-planters in the wonderful forest plantations of the Rotorua region and those of the South Island. Tree-planting by Farmers, and Sales of Trees. Over 456,000 seedling trees of the quick-growing Pinus radiata and cucalypts, and 210 lb. of tree-seeds, were disposed of during the year to farmers and soldier settlers. The call for the hardy, virile tree stock grown in the Forest Service nurseries greatly exceeded the demand, while the total delivery to farmers was greater than that of the previous year by 60 per cent. Many hundred inquiries as to tree-planting problems have been received, and substantial advice and assistance has been given to prospective planters throughout the Dominion. The Dominion Nurserymen's Association has inaugurated an educational tree-planting campaign, and during the year have co-operated very closely with the service by the private supplying and distribution of suitable planting stuck for farm wind-breaks, shelter-belts, and wood-lots.

CHAPTER IV.-RESEARCH AND EXPERIENCE. Forest Economics. Exploitation and distribution of the products of the forest are complementary to the growing and production of timber crops. In other words, the sawmiller is as necessary to the forester as the forester is to the sawmiller. Recognizing this fundamental truth, an early beginning was made last year in a study of the economies of the timber industry " from the tree to the consumer." It is essential that these two interests work very closely together, and it is for that reason that a greatly increased attention will be paid to the developments of the industry. A preliminary study was made of the wood-pulp and paper situation, and the possibility of establishing a paper industry in this country. This study is being carried forward this year. Some assistance was rendered to the Dominion Newspaper Proprietors' Association in exposing to them the probable sources of pulp-wood supply and the available water-powers. When capita] becomes more available a further effort will lie made to induce the establishment of a pulp and paper manufactory using our indigenous wood-supplies. Numerous inquiries regarding other specialized uses of various limbers indicate that the local markets show preference for the New Zealand manufactures where available rather than for the imported article. The work of advising on such inquiries is, however, hampered by the lack of information regarding the physical and mechanical properties of practically all the New-Zealand-grown timbers. This state of affairs, coupled with the length of time required to obtain a report on such matters as wood-pulping, stresses the necessity of establishing a forest-products laboratory to conduct such research.

Forest Plantation. Number of Trees planted. New Area planted. Total Area planted in Trees, 1896 1921. Whakarewarewa Waiotapu Kaingaroa West Kaingaroa Plains Puhipuhi Conical Hills Pukerau Dusky Hill Greenvale Gimmerburn Naseby.. Hanmer Springs Balmoral No. 6,170 589.480 599,870 417,995 155,664 10,000 28.000 9.600 426,425 Acres. 17 333 502 210 Acres. 7,983-34 7,539-65 501 -81 6,844-28 1,200-00 3,533-50 573-00 745-75 1.132-00 88-00 I .908-75 2,906-50 1,046-00 179 181.600 28,650 424,500 86-25 54 Totals 2,877,954 1,381-25 38,461-62

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Photo Dept. of Agriculture.

State Forest Plantation, Whakarewarewa, Rotorua Region. (Forest Guards headquarters to left.)

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[Photo E. II. Wa»m.

A Giant Kauri (37 ft. Girth) in the National Kauri Park. (Mr. J. Trounson against trunk.)

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Farm Shelter-belts, Canterbury Province.

[Photo Dept. of Agriculture

[Photo .1. II'. Wattney.

Forest Fire in the Nelson Region. Over 50,000 acres of New Zealand commercial and protection forests were destroyed by fire in 1920.

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[Pfi'tto Dejit. of Atjrieultai'e

Homestead in Canterbury built entirely of Pinus insignis.

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Samples of New Zealand timbers were forwarded to various forestry organizations in Australia and America, and collections of foreign woods received in exchange. A sawmillers' reference library has been established in Wellington. It will contain, when complete, series of catalogues covering the requirement of the various wood-using industries, besides plans and layouts of model plants. Forest-management. Silvical Research. Progress in the successful application of the principles of forest-management and silviculture is only possible as we have a working knowledge of Nature's modus operandi in the growth, regeneration, and life-history of the indigenous forests and trees. Unfortunately, many seai-s of conscientious observation are necessary to establish definite conclusions. With a full appreciation of this necessity, Canterbury College anil Auckland University College were approached early last year with a view to securing their co-operation in carrying out extended silvical investigations in our indigenous forests. The response in both cases to this appeal was generous and wholehearted. Mr. Charles E, Foweraker, M.A., M.Sc, F.L.S., of the Biological Department of Canterbury, consented to carry to completion the study of the ecology and regeneration of the taxad rain foresl of the Western Botanical District of New Zealand (generally known as the west coast of the South Island). A beginning was made by this gentleman in November, 1920, and studies were carried on through the summer held season. A brief progress report has been made: the complete report will be available in 1924. Provisional conclusions as reached by this investigator' indicate that the taxads rimu (Dacrydium. cupressinum), white-pine or kahikatea (Podocarpus dacrydiodes), totara (Podocarpus totara), silver-pine (Dacrydium Colensoi) do regenerate and reproduce vigorously, and the process of regrowth is in evidence everywhere where fire and stock are excluded. " The most obvious need " as pointed out by Mr. Foweraker, "is a system of fire-control." He has definitely determined that the outstanding need in the reproduction of flu- Westland forests shows " lire-prevention is the thing to aim at," and states " Repeated burns and excessive grazing doom regeneration." The service is now taking steps to eliminate these serious enemies to natural regeneration. Mr. W. R. McGregor, M.Sc, of the Auckland University College, has undertaken to carry through to completion the study of the life-history of the kauri (Agathis australis) and the ecology of the northern forests. Mr. McGregor definitely commenced this monumental study in November last, and already his investigations have proven of immense value to the programme of forest-management. This year's investigations have been confined almost entirely to the floristic aspects and to the general survey of the field under observation. Suitable sites for foresl meteorological and experimental stations have been selected, and the necessary plant and material has been collected. Mr. McGregor has been abb; to reach certain practical conclusions of a general nature : — 1. It has been definitely determined that the natural regeneration of kauri (Agathis australis). rimu (Dacrydium laxifolium), totara (Podocarpus totara). tnatai (Podocarpus spicatus), taraire (Beilschmiedia taraire), tawa (Beilschmiedia lawa), and certain others is dependent on the shade of a natural shelter wood. 2.' This shelter wood differs widely in nature, but is usually of two types : — (a.) Typical mixed forest, either virgin or cut over by selection fillings. In such situations the conditions essential for regeneration can usually be readily supplied if naturally lacking. (b.) Second-growth shelter wood, usually dominated by Leptospermum (tea-tree, or manuka). 3. Complete re-establishment of the regenerated stands under natural conditions usually requires a revolution of from twenty-five to fifty years. It follows, therefore, that all care should be taken of residual forest cover remaining after logging. This simply means fire-prevention. I. Timber-felling must be regulated so that the fire danger is minimized, and the itinerant gumdigger must be kept out. Sample Plots. In order that financial and economic conditions attendant to the regeneration of our indigenous forests may be accurately determined, areas of growing forests must be demarcated and the trees thereon carefully enumerated and measured from period to period. Several suitable plots were located and demarcated in Westland and plans were made for the definition of similar areas in other forest regions. Broadcast Seeding. At Kaingaroa Plains Plantation a profitable experiment was made in the broadcast sowing of Pinus insignis seed by mechanical means. The trial sowing this year was made through a grain-drill with disk coulters adapted so that the seed was fed through two spouts only and these about 6 ft. apart. The land received no special preparation beyond the clearing that is usually done for treeplanting. Where the coulters entered the ground properly the germination is satisfactory, and from this it may reasonably be inferred that the method is good and requires only that a specially constructed drill be used in order to be quite satisfactory. The construction of the ordinary grain-drill fits this implement for land that is cultivated and fairly even on the surface. On land such as was used in the trial under discusssion the implement was not flexible enough to permit the coulter entering the ground where the surface was uneven, and consequently there were numerous gaps where the seed was simply dropped on the surface of the ground and perished. An area of 4 acres was sown with 41b. of Pinus radiata seed mixed with 201b. of oats. The time occupied in doing the work was three hours with one man and three horses. From the trial made it is estimated that such work would cost from £1 to £2 per acre, the price varying according to the amount of preliminary clearing necessary before sowing the seeds.

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CHAPTER V.—GENERAL. Repoe,t op the Timber Trade for the Fiscal Year ending 31st March, 1921. Production. A statement showing the actual output in superficial feet of the various kinds of timbers from New Zealand sawmills during the years ending 31st March, 1919, 1920, and 1921, has been compiled from figures supplied by the Board of Trade and the Railway and Public Works Departments.

Production of Sawn Timber.

The output for the year ending 31st March, 1921, is only 4-38 per cent, above that for 1920, compared with the increase experienced from 1919 to 1920 of 30 per cent. During the first three quarters of the year—from April to December, 1920 —the production was heavy, but the JanuaryMarch, 1921, period showed a marked decrease. The unprecedented demand for timber which gradually arose during the latter part of the war period called into being fifty new sawmills. The output from these was only just beginning to reach the market towards the latter part of the year under review, at which time, unfortunately, the first effects of the present financial stringency were beginning to be felt in a marked decline in demand. A serious shortage in all classes of labour was experienced throughout the year- -more particularly skilled labour. To meet the high cost of living a substantial increase in wages was granted, this being reflected to some extent in the higher cost of production and the increased prices of timber sanctioned by the Board of Trade. Import. A general revival of the building industry and the renewal of many constructional activities temporarily suspended during the war is responsible for the heavy increase in the importation of all classes of timber. The apparent shortage of timber-supplies during the mid-year period accounted in a large measure for excessive importations of Oregon pine, and the bulk of these importations arrived during the last quarter of the year and added very considerably to the slackening in demand for local timber. Prices in every case have advanced, the most noticeable being that of jarrah, which, based on figures obtained from the Comptroller of Customs, shows an increase of 9s. per 100 sup. ft. over the figure for the year ending 31st March, 1920. Export. Much the same conditions as affected the timber trade within New Zealand governed the export trade. We find on examination of the export statistics a reflection of these conditions, for the volume of shipments rose during the first nine months and showed a marked decline in the last quarter. Talcing the year as a whole, however, the export trade can be considered to have been exceptionally good, and a survey of the statistics relating thereto may be of interest. The quantity allowed to be exported has, of course, been under strict control, and totalled for the year ending 31st March, 1921, 62,611,402 sup. ft. While exceeding the figure for the previous year, it is noticeable that this is almost entirely due to the heavy shipments of white-pine to Australia. Rimu shows a slight increase, and kauri a large decrease, over the figures for the year ending March, 1920. The average export price for all timbers per 100 sup. ft. f.o.b. exporting ports, was 21s. 7d., compared with I.Bs. and 16s. 2d. for the years ending 31st March, 1920 and 1919, respectively. (These figures are based on information furnished by the Comptroller of Customs.) Markets and Prices. The demand for timber during the year was not reflected in prices, as would ordinarily be the case under usual trade conditions, for during the whole period the prices have been subject to control by the Board of Trade, so that a review of prices in relation to the year's trade conditions is not called for. This, of course, refers only to trade within New Zealand, for it is quite well known that the prices secured for timber exported to Australia during the greater part of the year were considerably higher than those permitted to be charged locally. There was an increased demand for minor timbers, such as tawa (Beilschmiedia tawa), tanekaha (Phyllocladus trichomanoides), taraire (Beilschmiedia taraire), rewarewa (Knightia excelsa), mangeao (Litsea calicaris), pukatea (Laurelia 'novae-zealandiae), rata (Metrosideros robusta), and Pinus insignis.

Item. 1919. 1920. 1921. Kauri (Agathia auatralia) Ivimii (Docrydium cupreaainum) White-pine (Podocarpua docrydioides) .. Totara (Podocarpua totara) .. Matai (Podocarpua apicata) .. Beeoh (Fagua fuaca, F. Solandri, and F. Menzieaii) Pinua ins ignis Other Sup. ft. 21,835,023 111,318,579 03.130,005 13,387,038 11,930,040 4,466,116 1,501,274 228,377 "/ /o 9-58 48-86 27-74 5-87 5-23 1-96 0-00 0-10 Sup. ft. 22,598,391 145,584,203 82,419,821 14,414,298 17,820,597 9,050,344 3,004,201 013,225 °/ 10 7-63 49-10 27-82 4-86 0-02 3-25 1-05 0-21 Sup. ft. 1!). 01)8,184 152,182,339 79,612,233 17,810,008 22,770,834 7,707,051 6,844,868 2,529,005 °/ 10 0-37 49-23 25-75 5-70 7-37 2-49 2-21 0-82 Totals 227,803,112 100-00 290,105,080 100-00 309,102,442 100-00

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Various factors contributed to the increased prices sanctioned by the Board of Trade during the year. Mention has already been made of the trend of labour conditions ; ra.il charges have increased (Auckland, Is. per LOO sup. ft., and Greymouth-Hokitika, 6d.) ; and in addition an advance of Is. per LOO sup. ft. was allowed for dressing, provided that it did not raise the average cost above 4s. per 100 sup. ft. Following are the other increases (per 100 sup. ft.): — Rimu, Matai, and Totara: — „ Ordinary-building ...... iioart - (lass. 1)l8tnot - 8. d. s. d. Auckland.. .. .. .. .. ..5 0 10 Waikato .. .. .. .. . . .. 2 (i 2 0 Rangitikei .. .. .. .. ..2 6 2 0 Greymouth-Hokitika .. .. .. ..16 1 6 Southland-Otago .. .. .. .. ..16 16 Kauri: First class and heart, 4s. 6d. ; medium and second class, 4s. In January, 1921, a new class of kauri, known as " clean heart," was approved at a price of 10s. extra on first-class prices. Trade Extension. The specialized uses of many of the minor timbers are now becoming more, generally known. Already an increased demand is noticeable as a result of the Forest Service's educal ional work amongst the wood-using industries. Particular attention has been paid to the value of our native timbers in the manufacture of carriage-parts, tool-handles, &c, and such encouragement met with that the work will be carried on in a more extensive manner this coming year. The manufacture of such articles as laths, shingles, clothes-pegs, tool-handles, &c, which at present arc imported into the Dominion, offers good opportunities for the establishment of new industries.

Sir David Hutchins. This great master of silviculture and forestry in general passed away during the year in Wellington after a brief illness. His life was full of achievement, and he has left behind him a monument which will stand for all time. This memorial is not built of stone, but of something more lasting anil useful in the record of achievements and knowledge of nature which has contributed to man's progress and the betterment of civilization. Sir David deserved well of humanity. British Empire Forestry Conference. At the instigation of the chairman (Lord Lovat) and the members of the British Forest Commission a very important assembly of administrative forest officers and others from every part of the British Empire was held in London during .July, 1920. New Zealand was represented by Sir Thomas Mackenzie, G.C.M.G., High Commissioner of New Zealand. The chief object of the conference was to

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permit of an exchange of views on national and Imperial forest-policy methods of conservation and exploitation, and to compile a preliminary inventory of the timber resources of the Empire. Several resolutions were passed of peculiar value to New Zealand. The following are condensed resumes : — (1.) Each Government of the Empire should lay down a definite forest policy to be administered by a, properly constituted and adequate Forest Service. (2.) A stable forest policy requires the collection, co-ordination, and dissemination of facts as to the existing state of the forests and the current and prospective demands on them. (3.) It should be the primary duty of forest authorities to establish systematic schemes of forestry education. (4.) The proper development of the forestry resources of the Empire requires the establishment of an Imperial Forest Bureau, whose purpose will be to advise on the development of the Empire's forest- resources, act as a clearing house lor all services and ideas, assistin the purchase of seed-supplies, and in research, education, and policy. The next conference is to be held in Canada in 1923. The Forest Atlas. During the year a central depository for the original maps, plans, Stale-forest records. &c, was established at Wellington. This central depository is known as the Forest Atlas, and in it are deposited all field surveys, forest inventories, and statistical data. It is the basis for the working forest maps incident to forest-management. This work is being CO-ordinated with that of the regional offices, SO that accuracy is assured for the sound formation of the definitive forest working-plans. A complete system of " mother " maps on a scale of 1 in. to I -5 miles is under course of compilation for the whole of the Dominion's forests. This activity is well in hand, and will lie completed within six months. A general series of maps of all Slate forests is being gradually built up as the field-work and finances permit. The Forest Atlas is also the depository for all original photographic records essential in the recording of forest stands, types, conditions, and other- factor's of silvical operations. These permanent records will be available to the public on request. Forest Service Library. The formation of a compact but comprehensive working library for reference purposes was begun during the year. It is proposed to add to this library as funds permit, as well as to extend if to the regional offices. The public will be invited to make use of its facilities just as soon as space can be secured for its proper housing. Books and pamphlets to the number of 200 were installed during the year. An up-to-date catalogue reference library of manufactories producing and offering equipment and material used in commercial forest-exploitation was also opened. It is considered that this seel ion of the library will be of use to sawmillers and the woodworking industry generally. Resignation of Conservators ok State Forests. On the appointment of the Forest Service Conservators of forests at Auckland, Rotorua, Hokitika, Tapanui, and Invercargill, the Commissioners of Crown Lands holding office of Conservators of State Forests at Auckland, Hokitika, Christchurch, Dunedin, and Invercargill resigned their appointments. The Service wishes to express its grateful appreciation of the interest, attention, and sympathy that forestry has received from these gentlemen during their tenure of office.

CHAPTER VI.—RECOMM ENDATIONS. 1. State Forests. It is obvious that the problem of assuring the present and future timber-supplies of this Dominion must be solved through the conservation and re-establishment of forests in the indigenous-forest regions, and not chiefly by the artificial formation of exotic tree plantations. You are therefore recommended, sir, to secure the dedication of every available acre of Crown forest land as provisional State forest. Reasoned and conscious forest control will assure the fullest utilization of the residual virgin supplies, and permit of a competent classification of (he land as to whether it is chiefly valuable for settlement or lor- forestry. It is recognized that forests were made for- men and not men for forests, and the co-ordination, therefore, necessary between the settlers' (farmers') interests and those of the millers and other users of forest products will be carefully balanced. The Forest Service is very much alive to the call for more land for settlement hence all forested lands chiefly valuable for agriculture will lie milled first (other things being equal) and handed over to the Lands Department. There are several hundred thousand acres of Crown forest still unsubjected bo competent forest administration. These areas of undedicated and unalienated Crown forests, carrying many hundred millions of feet-, are situated in the North Auckland, Mannkau plateau, King-country, Taranaki, the Urewera district, the ranges from Lake Taupo to Wellington, along the eastern slope of the Southern Alps, from the Wairau River headwaters southwards to Southland, the Catlin's River country in Otago, and in certain parts of Nelson and Westland Provinces. 2. Unity of Administration. Success in securing efficient and economical results from the application of forestry to your State forests can only be attained by unity of control. There must be only one authority managing State

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forests. At present there are several. You are recommended to secure the functioning of one authority, and one only, and that is the State Forest Service, which is the one instrument equipped to deal with forestry. 3. The Forest Act. Continuity of policy is vital to the practice of forestry, and you are therefore recommended, sir, to secure the expression of your forest policy in a Forest Act, thereby crystallizing a definite programme of State-forestry action at least for a working-period of five to ten years. 4. School op Forestry. Your forest policy and programme will only make such progress as is possible by the operations of trained forest technicians. One year has now been lost in providing educational facilities. You are advised, sir, to establish the School of Forestry without delay. 5. Appointments. Two of the most important forest-conservation regions—namely, the Wellington Region, which embraces Hawke's Bay, Wellington, and Taranaki Provinces; and the Nelson Marlborough Region, which includes these two provinces arc still without Conservators of Forests. The forest research and experimental programme is being sadly hampered through the lack of a trained forest investigator. You are advised, sir, to fill these three posts at the earliest possible opportunity, in order that our constructive programme may be kept in line with our administrative activities. 6. Forest Fires. You are advised, sir, that the greatest enemy to successful forest-management in New Zealand is fire. Until and unless this arch-enemy can be controlled no forest plans are worth the paper they arc written on. You are recommended, sir, to jirovidc full and adequate powers in the Forest Act for the use of the Forest Service in dealing with this serious and grave danger to New Zealand's forest heritage. T .... „ ° L. Macintosh Ellis, Director of Forestry. •

ANNEXURES.

ANNEXURE No. I.—STATE AND PROVISIONAL STATE FORESTS AS AT 31st MARCH, 1921.

State forests and provisional State forests comprise 10-3 per cent, of the total area of the Dominion. Total area of State forests and provisional Stale forests at 31st March, 1921, 6,802,970 acres.

ANNEXURE No. II.—REPORT UPON FORESTATION OPERATIONS IN THE NORTH ISLAND. (H. A. Goudie, Conservator of Forests, Rotorua Conservation Region.) Labour. Whilst there has been a fair amount of casual labour available during the year it has not always been possible to pick and choose, and on the whole it has been difficult to get men that were altogether suitable for the work. For three months prior to the withdrawal of the prison labour in July the

Area in Acn Fiscal Yc •es at End of ear, 1920. Changes in Acres during the Fiscal Year, 1920-21. Net Increase in Area. Area in Acres at End of Fiscal Year, 1921. c « »p5 o | pP Land District. State Forests. Provisional State forests. State Provisional Forests. State Forests. State 1'orests. Provisional State Forests, North Auckland .. Auckland Hawke's Bay Taranaki Wellington Nelson Marlborough Westland Canterbury Otago Southland 106,039 144,796 199,653 69,564 500,506 19,955 79,753 442 290,176 129,465 125,953 Nil 24,255 15,350 35,264 Nil 1,288,221 105,631 1,126,944 Nil 231,379 466,328 911 14,898 565,305 Nil 815 Nil 682,847 Nil 500,059 Nil 21,643 54,754 106,956 144,796 199,653 69,564 500,506 19,955 79,753 1,542 290.176 129,465 125,953 14,898 589,560 15,350 36,079 Nil 1,971,068 105,631 1,627,961 Nil 253,022 521,082 2-7 8-1 3-9 4-3 7-3 42-2 6-7 42-1 3-0 4-2 8-2 1,100 Totals I ,<i(i(i,302 3,293,372 2,011 1,840,321 1,668,319 5,134,651

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number of prisoners employed gradually decreased, with the result that the progress made with the work was most unsatisfactory. In order to make up leeway it was necessary to get together a gang of about thirty workmen to replace the prison labour, and as this took some considerable time to accomplish the work in consequence was not finished until late in the season. The value of work done, by prison labour hereunder summarized completes the record of same from 190.1 up to the withdrawal of this labour from forestry work : —

Summary of Prison Labour.

Prison labour on afforestation work ceased on the 22nd July, 1920. Tree-growing. The weather conditions during the spring and early summer were ideal, and resulted, with a few exceptions, in good growth being made by the nursery stock. This period of favourable weather was, however, followed by a protracted spell of dry, hot weather which arrested the growth of most of the seed-bed stock, with the result that these are somewhat below the average in size. The lined-out. trees are, as a whole, a splendid lot, the good start obtained in the spring being responsible for the strong, well-rooted condition of the stock. The percentage of trees raised from seed during the year was marred by the exceptionally poor germination obtained with the seed of Douglas fir, which from 100 lb. produced only 300,000 trees, or one-fifth of the number raised from a similar quantity of seed the previous year. Some 350,000 trees were raised especially for selling to private planters, the principal species being Finns radiata, Cwpressus Lawsoniana, Cupressus macrocarpa, and thirteen species of the genus Eucalyptus. All are good except the eucalypts, which as a whole are somewhat under size. During the spring 1,500,000 seedlings were lined out in the temporary nursery at Kaingaroa, and, in spite of the fact that the work was not completed until the first week in October, the growth made is most satisfactory and the death-rate practically nil. Owing to the difference in the soil and climatic conditions, the growth made by nursery stock at Kaingaroa is not nearly so vigorous as in the nursery at Rotorua. The stock, however, is much sturdier, and this is especially true of the two-year-old plants of Firms radiata, which under warmer conditions generally become overgrown and less suitable for transplanting. Extension op Plantations. An area of 1,062 acres was planted during the year, thus bringing the total area planted to date in the North Island plantations to 26,068 acres. With the exception of 17 acres planted at Whak arc ware wa which was of an experimental nature, the whole of the extension work was done on the Kaingaroa Plains. The results as a whole are satisfactory, although, owing to the dry summer and autumn, the growth made is below the average. • Fire Protection. No fires occurred in the plantations during the year. The dry weather experienced during the last quarter of the year, however, caused considerable anxiety on account of the prevalence of (ires in the surrounding country. The only safe course is to definitely locate the position of every fire when once smoke is observed, and treat every sign of fire as a possible danger to the plantations. The anxiety which usually exists until a fire is located will be largely avoided when the lookout stations are established. The sites chosen for these stations command a view over a very large area of the plantations, and, what is equally important, over a great deal of territory outside the plantation boundaries. At Whakarewarewa Plantation the site chosen is the top of Mount Kakapiko, a position from whioh seven miles of the boundary on the Rotorua-Waiotapn Road as well as three parts of the plantation can be kept under observation. The planted areas at Waiotapu and Kaingaroa will be well provided for with the lookout station which it is proposed to erect on the summit of Maungakakaramea. From this place a magnificent view can be obtained over a huge area of country ; the entire area of Waiotapu Plantation and practically every yard of the boundary can be seen, while three-fourths of the planted area on the Kaingaroa Plains can be observed. The large area of unoccupied country, clothed chiefly with a strong growth of bracken, manuka,, and other shrubby plants, lying adjacent to the plantation areas, necessitates constant labour being spent on the fire-breaks. Inside the boundaries a narrow strip is ploughed where possible and the weed-grow I li kept in check by harrowing, while a further measure of safety is secured by burning off wide strips outside the boundaries. The ploughing and harrowing of firebreaks has been more economically and expeditiously the tractor was purchased for this work. Ninety per cent, of the lire-breaks at Kaingaroa and Waireka,

Station. Whakarewarewa Plantation Waiotapu Plantation Kaingaroa Plains Plantation Year. 1904-17 1900-13 1920-21 1912-21 Period. Yoars. 12-58 12-08 0-42 7-60 Total Value of Work performed. £ s. d. 12,518 7 10 24,655 2 6 378 4 3 15,495 10 4 Average Daily Number of Men employed during Period. 12-86 30-22 9-10 22-76 Average Value of Work per Man |>cr Year. £ s. d. 77 7 7 67 11 3 41 11 3 89 11 8

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as well as a considerable portion of the fire-breaks at Waiotapu, have been kept in an efficient state entirely by the use of the tractor. Two five-horse teams would have been required to perform the same amount of work, with the added disadvantage that feed and water would have had to be carted to the teams. A further aid to the prompt suppression of fires will be provided during the coming year, when it is proposed to establish depots for keeping lire lighting tools at convenient places throughout the entire area under trees. In all, the erection of eighteen such depots is contemplated. The increasing interest taken by many citizens, both European and Maori, in the fire-prevention work is most gratifying, and is herein gratefully acknowledged. Landowners adjacent to the plantation areas have willingly co-operated with the Forest Rangers both by notifying them of their intention to burn off and by permitting and assisting with the burning of strips along the plantation boundaries. Telephonic warnings have been frequently received from persons who have observed fires in the vicinity of the plantations, whilst others, of their own volition, have extinguished fires which might have spread and caused destruction. The spread of fire is due in a great measure to the large area of unoccupied land in the Rotorua Region. Fires are started by settlers for the purpose of burning off their holdings, and thoughtlessly allowed to spread into adjoining country ; and occasionally along tourist routes a, lire is started by the throwing of a lighted match or cigarette from a vehicle. The Eire danger will probably always exist to some extent, but it could and should be lessened by the introduction of legislation that would act as a deterrent to thoughtless or vicious persons. Buildings. The building done during the year was carried out under very great difficulties. Materials were difficult to procure and, like tradesmen's wages, were high in cost. Considerable delay occurred in the delivery of the timber, and this was responsible for increasing the labour-cost to some extent. Additions were made to the two houses in the nursery, and to the building at the Green Lake, which was converted into a suitable dwelling for the forest guard. The erection of the cottages for workmen was unfortunately not able to be undertaken, as the material for this was not delivered until close on the end of the fiscal year. The workmen's cottages will be,started early in the corning year, and it is expected that the twelve buildings provided for will be completed by the spring. Experimental Work. A trial which was made with I he direct sowing in situ of seed of Pinus radiata at Kaingaroa gave sufficiently encouraging results to show that, if the method adopted was developed, there is reasonable grounds for believing that much of this land could be successfully afforested at a comparatively low cost. Some years ago trials were made (I) of sowing broadcast the seed amongst the natural vegetation, and (2) of sowing a, pinch of seed in a, prepared spot. The first method failed, while the second one was only partially successful. From these trials it was apparent that the failures were due chiefly to the lack of moisture available for the seedling during the early stages of its existence. With the sowing in prepared spots the chief fault lay in the fact that failures frequently occurred in patches, and, as the spots were evenly spaced, there were undesirable gaps left. Private Planting and Sale of Trees. There was a marked increase in the number of applications for trees and tree-seeds dining the year, the quantities disposed of being 343,025 trees and 2201b. of tree-seeds, as against 185,890 trees and 1301b. of tree-seeds for the previous year. As usual, the demand was chiefly for the fast-growing and hardy species of eucalypts and Pinus radiata, and in most cases the trees were planted in single rows along the boundaries for providing shelter for stock. The correspondence which is entailed with this branch of the service's activities is always very heavy during the planting season, and, although the results are not at present very apparent, the efforts made to encourage and direct the planting done by private individuals must have a beneficial result upon the country in the long-run. These efforts are gradually being directed upon a wider sphere. The co-operation of private nursery firms in growing and selling at reasonable rates approved kinds of forest-trees was secured through the executive of the Nurserymen's Association when in conference last December. Provincial and district secretaries of the Farmer's Union are being circularized, and arrangements are in progress for detailing an officer to visit all parts of the North Island and meet and advise intending planters. Tn this way it is hoped to stimulate an interest in tree-growing and induce every land-owner to devote at least a portion of his land to the growing of a timber orop, and to plant those trees which have an economic value quite apart from their use as shelter. Revenui:. The amount of revenue derived from the North Island plantations and nursery is detailed hereunder along with last year's revenue for comparison : — 1920-21. 1919 20. £ s. d. £ s. d. Sales of trees (343,025) .. .. .. .. 677 3 8 339 9 3 Sales of tree-seed (220 lb.) .. .. .. 153 6 7 114 17 11 Sales of firewood (92 cords) . . .. .. 194 11 6 331 11 0 Sales of posts and battens (i,400) .. .. 310 0 210 15 0 Grazing . . .. .. .. ..112 511 144 8 9 Rent of cottages .. .. .. .. 289 11 8 Sundry recoveries .. .. .. .. 181 12 6 209 10 11 £1,612 1 10 £1,350 12 10

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Pi separations for 1921 Planting. Preparations for planting at Kaingaroa Plains and at Kaingaroa West are well in hand. The approximate percentage of each species it is proposed to plant is as follows : Douglas fir, 52-5 per cent. ; Pinus ponderosa, 20 per cent. ; /'inns radiata, 23-4 per cent; Pinus strobus, 0-8 per cent. ; Pinus Laricio, 3-3 per cent.

ANNEXURE No. lII.—A REPORT UPON AFFORESTATION OPERATIONS IN THE SOUTH ISLAND. (I). J. Buchanan, Conservator of Forests, Canterbury Otago Conservation Region.) During the year an area of 319| acres was planted, thus increasing the total area planted in the South Island to i2,392| acres. That the new area planted is so small is accounted for by the fact that practically half of the total number of trees transferred to the plantations was utilized in replacing failures over several seasons' planting-areas, this phase of operations having, as a result of the shortage of labour- and an inadequate supply of the required species, been necessarily somewhat neglected for a considerable period. Trees raised in the nurseries during the year are estimated at 3,616,700, while the total raised to date is 48,521,796. Tree-raising was carried out under somewhat unfavourable conditions, the spring season being generally very late, while in the summer each district experienced more or less protracted periods of drought, which had an adverse effect upon the growth of nursery stock. The total number of trees - in the nurseries on the 31st March was 6,110,900, and the output for Ihe coming season is estimated at approximately 1,600,000. The results obtained on the plantations are generally good, the percentage of failures amongst recently planted trees being considerably lower than that of the previous year. Labour. Labour has been plentiful throughout the year, and it has been possible to undertake much work that- had of late years been neglected, and to expedite preparations for the approaching season. 'It is satisfactory to note that the class of labour available has shown marked improvement over that of the previous year, the somewhat shiftless workman who accepted employment and quickly became dissatisfied having been gradually replaced by a much steadier and more efficient type. Preference in filling vacancies has again been given to returned soldiers, many of whom have proved worthy of consideration and evinced a desire to take forestry work as a permanent occupation. Sale of Trees to Farmers. Trees to the number of 113,115 and tree-seeds aggregating lb. in weight were supplied to farmers and local bodies during the year. Full advantage of the opportunity to obtain trees lice of charge was taken by soldier settlers, who secured approximately one-third of the total number distributed. Owing to the short-age in Pinus radiata and Cupressus macrocarpa species for which a heavy demand was experienced 100 applications for some 80,000 trees had to be refused. Approximately 250,000 trees have been reserved for the requirements of farmers and local bodies during the coming winter, and, as numerous applications are now being received, it is anticipated that this number will be fully booked. Grazing of Sheep on Plantations. Sheep have again been grazed on some of the older plantations with good results, the expenditure in connection with the upkeep of fire-breaks having by this means been reduced to a minimum. At Hanmer Springs a neighbouring runholdor was granted a lease, for- a limited number of sheep, of the older part of the plantation, while at Conical Hills the grazing was done, as formerly, with a depart mental Hock. Revenue. The amount of revenue derived from the South Island plantations and nuiseries during the year was £1,435 Bs., details of which are given hereunder. The increase of £331 18s. over the previous year's revenue was derived chiefly from house-rentals. A slight increase in the sale of trees and firewood will be noted, while a, corresponding falling-off occurred in the revenue for wool and sheep. t s. d. Trees (113,115) .. .. .. .. .. .. 273 15 9 Sheep .. .. 457 4 3 Wool and skins .. .. .. .. .. .. 59 15 1 Firewood, poles, &c. .. .. .. .. .. .. 243 14 5 Grazing .. .. .. .. .. .. .. 29 19 6 House-rentals .. .. . . .. .. .. 363 4 0 Sundry recoveries .. .. .. .. .. .. 715 0 Total .. .. .. .. .. .. £1,435 8 0

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Survey Work. A survey party has recently been working on the Greenvale Plantation reserve, dividing the remaining area of about 4,000 acres into blocks and laying off. the necessary roads and fire-breaks. The country does not lend itself to subdivision into areas of uniform size, and efforts have been directed chiefly to carrying out the work in a manner that will allow the most economical and efficient fire-protection methods to be adopted. On completion of the work at Greenvale the party will be transferred to Pukerau Plantation, which, although planted up for several years, has not yet been surveyed. Acquirement of New Areas. At Hanmer Springs an area of 15 acres was purchased for nursery purposes, and is now being prepared for tree-raising next season. The old area was not of sufficient size to permit a large output to be maintained indefinitely without seriously reducing its productivity, and it is anticipated that with the additional area now available much better results will be obtained. An area of 306 acres adjoining the Naseby Plantation was also acquired. This section will be used chiefly for the production of fodder crops, and on it the Forest Ranger's residence is now being erected. v General. The preparation of areas at Balmoral, Naseby, and Greenvale Plantations, aggregating over 900 acres, for planting during the coming season has been practically completed. During the winter months a capable officer will tour the South Island conducting a series of addresses on forestry, and giving assistance generally in the way of inspections of land and advice on tree-planting to local bodies and private individuals. I desire here to record my appreciation of the willing and able assistance received by me from all officers during the year.

ANNEXURE No. IV.—SUMMARIES. Summary showing the Area planted in Trees (in Acres). North Island Plantations.

Main South Island Plantations.

Summary of Operations in Nurseries during the Year ended 31st March, 1921.

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Plantation. Pines. Larch. Eucalypti. Dm2_iI_ Douglas '''"• Miscellaneous. Totals. K liakarowarewa Waiotajni Kaingaroa West Kaingaroa Plains Puhipuhi 3,154-490 6,033-850 501-844 6,359-414 300-000 2.557'800 3,310-850 1,468-700 180-500 643-310 447-576 159040 14-450 37-296 7,983-340 9,539'650 501-844 6,844-286 1,200-000 900-000 Total 16,349-598 5,868-650 2,549-200 643-310 t 447-576 210-786 26,069-120

Plantation. I Pines. Larch. Spruce and Douglas 1'ir. Ash and liirch. Ash and Poplar. Miscellaneous. liscellaneous Totals. I I Conical Hills Pukerau Dusky Hill Greenvale Gimmerburn Naseby .. ... Hanmer Springs Balmoral 1,850'00 555-00 270-75 1,091-50 74-00 1,605'50 1,409-00 1,042-50 913-00 138-50 126-00 506-00 18-00 100-75 40-50 14-00 32-50 320-50 3-50 506-00 18-00 100-75 40-50 14-00 3250 320-50 3-50 3,533-50 573-00 745-75 1,132-00 88-00 1,909-00 2,906-50 1,046-00 234-25 93-25 46-75 271-00 1,177-00 Totals 7,898'25 2,595-25 j 231-75 46-75 126-00 1,035-75 11,933-75

Total E: >enditure. Trees in Ji urscries. Maintenance. Uuildings, &c. Output o] : Trees. Estimated Numher in Nurseries at 31st March, 1921. Name of Nursery. Tree-growing. Estimated Trees raised during Year. Trees sent to Outside Places during Year. Total. Trees sent to Plantations during Year. lotorua 'apanui tanfurly lanmer Springs.. £ s. d. 8,456 12 0 1,839 14 1 831 3 9 1,956 14 0 £ s. d. 443 10 6 2,612 9 10 124 2 7 1,338 2 0 £ s. d. 1,438 1 2 808 5 3 507 0 10 748 13 0 £ s. d. 10,338 3 8 5,260 9 2 2,472 7 2 4,443 9 0 1,735,000 1,155,000 450,700 2,011,000 1,769,179 474,025 181,000 453,150 407,447 66,250 4,230 42,774 11,000,000 2,262,700 1,004,820 2,843,400 Totals 13,084 3 10 5,518 4 11 3,512 0 3 22,114 9 0 5,351,700 2,877,954 520,702 17,110,920

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Summary of Operations in Nurseries from 1896 to 1921.

Summary of Operations in Plantations during Year ended 31st March, 1921.

Summary of Operations in Plantations from 1896 to 1921.

Total Expenditure. Estimated Number of Trees raised. Output ot Trees. Name of Nursery. ! I Maintenance. Buildings, &c. Total. £ s. d. £ s. d. £ s. d. 8,065 18 9 13,627 14 4 92,543 16 4 6,763 14 1 6,612 9 4 , 46,727 10 7 2,694 15 5 4,400 5 5 i 24,905 19 8 3,407 7 6 4,455 8 11 ' 26,849 17 6 2,856 17 3 9,256 7 1 | 2,109 18 5 3,070 2 7 To Plantations. To Outside Places. Tree-growing. I Rotorua lapanui Ranfurly Hanmer Springs Scarborough* .. Kurow* £ s. d. 70,850 3 3 33,351 7 2 17,810 18 10 18,987 1 1 6,399 9 10 960 4 2 75,126,218 20,979,968 7,664,947 16,644,811 3,059,010 172,460 61,715,686 16,490,118 6,071,168 11,799,905 1,965,095 2,410,532 1,405,355 408,459 670,954 1,094,515 172,460 •• Totals 148,359 4 4 20,931 15 9 34,062 13 8 203,353 13 9 123,648,014 98,041,972 6,162,275 tf.B. —Expenditun * Nursery now closed, has not been allocated to " Maintenance" se' larately until 1917-18.

Name of Plantation. Number received from Nursery. Trees. Number used to Number planted replace Losses. on New Area. Total Expenditure for Year, including Cost of Trees from Nurseries. New Area planted. Whakarewarewa Waiotapu Kaingaroa West Kaingaroa Plains Puhipuhi Conical Hills .. Pukerau Dusky Hill .. jreenvale gimmerburn .. Naseby Hanmer Springs Balmoral Waitahuna 6,170 589,480 599,870 417,995 155,664 10,000 28,000 9,600 426,425 2,270 3,900 176,400 413,080 599,870 142,285 275,710 155,664 10,000 28,000 9,600 113,825 312,600 £ s. d 6,191 12 8 8,274 5 4 4,355 12 10 8,861 5 8 2,241 6 7 2,525 11 11 1,252 3 5 585 3 3 10,034 8 6 32 14 7 4,113 15 8 2,287 15 8 5,933 5 9 8 5 8 Acres. 17 333 502 210 * 179 181,600 28,650 424,500 31,050 150,550 28,650 333,500 91,000 86J 54 Total 2,877,954 1,031,244 j 1,846,710 iximately 150 acres replanted. ) 56,699 7 6 1,381J * Appr<

Name of Plantation. Number raised from Seed sown in Situ. Number received from Nursery. 'rees. Number used to replace Losses. Total Number in Plantations. Total Expenditure to Date, including Cost of Trees from Nurseries. Total Area planted. Total Expenditure per Acre planted (including Cost of Buildings). Whakarewarewa Waiotapu Kaingaroa West Kaingaroa Plains Puhipuhi Conical Hills Pukerau Dusky Hill .. Greenvale Gimmerburn Naseby Hanmer Springs Balmoral Raincliff 109,725 83,121 20,602,850 26,889,849 599,870 12,441,733 1,419,000 10,751,401 870,860 3,053,497 2,070,345 936,235 5,084,958 9,570,333 2,207,547 3,976,264 5,384,709 1,888,660 419,000 1,465,105 57,300 872,660 185,125 783,339 647,805 1,814,149 598,440 16,730,311 21,588,261 599,870 10,553,073 1,000,000 9,286,296 813,560 2,180,837 1,885,220 152,896 4,437,153 7,756,184 1,609,107 r,o,ooo £ s. d. 105,256 5 3 109,665 15 11 6,058 16 6 57,600 1 4 10,514 4 8 57,996 6 1 7,458 18 9 22,669 7 8 27,953 2 8 6,874 5 10 36,656 5 10 42,936 11 3 25,767 9 7* 1,107 17 2 Acres. 7,983 9,539 502 6,844 ' 1,200 3,533i 573 745J 1,132 88 1,908} 2,906', 1,046 206 £ s. d. 13 3 9 11 10 0 12 1 7 8 8 4 8 16 1 16 8 3 13 0 4 30 7 10 24 13 10 78 2 4 19 4 1 14 15 6 24 12 8 5 7 6 Experimental Group. Waitahuna Tekapo Dumgree Galloway Omarama 42,025 48,000 1,679,765 6,930 4,390 11,500 1,110,125 3,050 30,525 48,000 569,640 3,880 4,390 319 7 9 275 8 3 16,309 16 7 84 19 10 80 12 9 11 29 209 2 2 29 0 8 9 9 11 78 0 9 42 9 11 40 6 4 Totals 192,846 98,279,588 19,217,231 79,305,203 535,585 13 8 38,460J *Im jludes purchase of 6,499 acres at 10s. per acre.

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ANNEXURE No. V.—REVIEW OF THE TIMBER INDUSTRY. Export of Sawn Timber and other Forest Products.

(Irom information supplied by the Comptroller of Customs. All figures refer to the fiscal 1920, and 1921, oxcept those for kauri-gum and fungus, these covering the calend 1 years ended 31st March, 1919, lar year in each case.) h, 1919. 1920. Item. : : ,J, " mtit y- eentage. Vsln «- «" antit y- eentage. | v """'' 1921. Quantity. Value. Sup. ft. £ Sup. ft. £ Kauri .. .. 9,280,213 13-51 97,084 3,719,610 06-84 45,763 Rimu .. .. 27,977,703 40-72 194,282 12,125,889 22'57 90,135 White-pine.. .. 28,385,105 4132 233,680 34,827,162 64'82 317,150 Beech .. .. 1,254,091 01-82 10,670 772,661 01'43 7,266 Other (NewZealand).. 1,797,425 02-62 16,224 2,264,588 04-22 18,362 Other (foreign) .. 2,566 00-01 33 15,092 00-12 269 68,697,103 10000 551,973 53,725,002 100-00 484,945 Tons. £ Tons. £ Tanning-bark .. 8 .. 122 47 564 Kauri-gum .. .. 2,419 .. 157,313 4,128 .. 255,812 Fungus .. .. 103 .. 5,784 49J .. 2,953 Sup. ft. £ 1,201,455 01-91 19,019 12,981,010 2075 110,274 44,382,691 70-88 474,757 221,395 00-35 2,578 3,822,401 06-10 37,971 2,450 0001 97 62,611,402 100-00 644,696 484,945 62,611,402 £ 564 255,812 2,953 Tons. £ Tons. 6,481 90 6,481 .. 556,756 90 .. 8,489

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Import of Sawn Timber and other Forest Products.

Approximate Cost of Paper. —Preparation, not given; printing (1,300 copies), £60.

Authority : Marcus F. Marks, Government Printer, Wellington.—l92l.

Price Is. \

(From information supplied bj by tl y the Comptroller of Ci lie Comptroller of Ci ustoms. All figures re] 1920, and 1921.) astoms. All figures refer to the fiscal ye 1920, and 1921.) yea: ea rs ended 31st March, 1919, mm ±i_o, anu ii_±./ 1921. Item. # Ironbark Jarrah Douglas fir Other 1919. Quantity. Sup. ft. 2,606,442 668,362 2,694,052 4,209,218 1919. Quantity. Sup. ft. 2,606,442 668,362 2,694,052 4,209,218 1920. Value. Quantity. Value. £ Sup. ft. £ 40,474 3,100,575 58,395 7,473 4,199,964 49,610 25,400 2,889,701 26,982 76,581 6,676,302 145,465 Quantity. Value. Sup. ft. £ 7,819,857 152,291 5,918,063 97,166 6,325,236 82,020 15,155,910 396,979 10,178,074 149,928 16,867,642 280,452 No. 5,457 2,332,182 6,373 Tons. 39,721 3,184 39,990 4,406 942 23,018 280,452 35,219,066 728,456 Laths, palings, rails, &c. .. No. 1,572,744 No. 6,373 9,373,235 22,150 Tanning-bark Wood-pulp Tons. 3,225 178 Tons. 39,990 3,749 23,018 1,521 60,567 41,425