STATE FOREST SERVICE ANNUAL REPORT OF THE DIRECTOR OF FORESTRY FOR THE YEAR ENDED 31st MARCH, 1949

Appendix to the Journals of the House of Representatives, 1949 Session I, C-03

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1949 NEW ZEALAND

STATE FOREST SERVICE ANNUAL REPORT OF THE DIRECTOR OF FORESTRY FOR THE YEAR ENDED 31st MARCH, 1949

Presented t& Both Houses of the General Assembly Pursuant to Section 64 of the Forests Act, 1921-22

The Director of ' Forestry to the Hon. the Commissioner of State Forests. Sir,— Wellington, 12th August, 1949. I have the honour to present herewith, pursuant to section 64 of the Forests Act, 1921-22, the annual report of the operations of the State Forest Service for the year ended 31st March, 1949. I have, &c., Alex. R. Entrican, Director of Forestry. The Hon. the Commissioner of State Forests.

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CONTENTS PAGE Chapter I—Summary and Review .. .. .. .. .. .. 3 Chapter II —Forest Policy .. .. .. . . .. .. .. 4 Chapter III —Management Division .. .. .. .. .. .. 12 Chapter IV —Public and Private Forestry .. .. .. .. .. . . 22 Chapter V —Development Division (Training and Research) .. .. .. .. 25 Chapter Vl—Commercial Division .. .. .. .. .. .. .. 39 Chapter Vll—Engineering Division .. .. . . .. .. .. 45 Chapter VIII —Operations Division .. .. .. .. .. .. .. 52 Chapter IX —Forest Economics and Trade .. .. . . .. .. .. 59 Appendix I—Area of State Forests as at 31st March, 1949 .. .. .. 66 Appendix ll—Summary of Planting and Silvicultural Operations .. .. .. 67 Appendix III —Exports of Sawn Timber—Volume .. .. .. .. . . 68 Appendix IV —Exports of Sawn Timber—Value .. .. .. .. 69 Appendix V—Timber Imports—Volume .. . . . . .. .. .. 70 Appendix VI —Timber Imports—Value .. .. .. .. .. 71 Appendix Vll—Output of Sawn Timber for Year Ending 31st March, 1949 .. .. 72 Appendix VIII —Logging and Sawmilling Statistical Summary .. .. .. 73 Appendix IX —Forest Offences, 1948-49 .. .. .. .. .. .. 74 Appendix X—Training and Recruitment, 1948-49 .. .. .. .. ~ 75 Appendix Xl—National Forest Survey .. .. .. .. .. 75 Appendix Xll—Constitution of Rural Fire Districts .. .. .. .. .. 76 Appendix XIII- —Forest Service Logging Operations .. .. .. .. 80 Appendix XIV —Forest Service Sawmilling Operations .. .. .. .. 80 Appendix XV—Payments and Receipts, 1945-49 .. .. .. .. 81 Appendix XVI —Graph : New Zealand's Overseas Timber Trade . .. .. 82 Appendix XVII —Statement of Accounts—Rotorua Utilization Branch .. .. 83

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REPORT CHARTER I—SUMMARY AND REVIEW The salient features' of the year's operations are summarized and reviewed hereunder:— (1) Forest Resources. —Additional areas to the extent of 71,235 acres were placed under reservation as State forest, and 1,792 acres were withdrawn from reservation. The total area under reservation at the 31st March, 1949, was 9,355,000 acres. (2) Afforestation. —The new area planted, 4,563 acres, was the largest since the year 1939-40. In addition, 1,334 acres were blanked and 832 acres replanted. (3) Forest Mensuration. —Timber appraised during the year was the largest quantity in any one year since the inception of the Forest Service ; the quantity was 187,000,000 board feet. (4) Working Plans. —Preparation of working plans was accelerated by the adoption of an abbreviated type. At the close of the year 20 plans were in course of preparation. (5) Timber Sales. —Total sales of standing timber anwunted to 151,000,000 board feet, valued at £264,000. In addition, saw logs and peeler logs to the extent of 6,789,000 cubic feet, valued at £288,900 and equivalent to another 45,000,000 board feet, were sold to the departmental sawmills and to private sawmillers. (6) National Forest Survey.—The forest survey covered 470,000 acres during the year, bringing the total area covered as at the 31st March to 1,695,000 acres. A broad provisional estimate of the total merchantable resources of podocarp timber on lands of all tenures is 5,000,000,000 board feet of standing timber. (7) Departmental Logging.—Logging operations were expanded considerably during the year, and a total of 7,603,000 cubic feet of logs of all kinds was extracted, exotic species accounting for 64 per cent. (8) Departmental Sawmilling.—A total output of sawn timber was almost 23,000,000 board feet, of which 13,139,000 board feet was sold, and the balance used for boxmaking and departmental building purposes. Exports amounted to 3,329,000 board feet. (9) Timber-production. —Production of sawn timber for the whole of New Zealand reached an all-time record of 480,000,000 board feet, of which 168,000,000 board feet were exotic species. - (10) Sawmills. —Sawmills registered at 31st March, 1949, numbered 692. (11) Overseas Trade. —Exports of sawn timber at 23,000,000 board feet were the highest since 1936, and total timber imports at 45,000,000 board feet the highest since 1930. (12) Forest Fires. —There were 32 fires in State forests during the year, but this number was the lowest for a number of years, and the damage was negligible. Three sawmills were destroyed by fire, and one was -damaged. (13) Employment. —The total number of employees on State forests at the 31st March, 1949, was 1,936. Unfortunately, forest employment is characterized by a high rate of turn-over, for though 2,876 commenced work during the year, 2,670 terminated their employment, giving a net increase for the .year of only 206.

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CHAPTER lI—FOREST POLICY National Pulp and Paper Project ' (1) The decision in principle taken by the Government to proceed with the establishment of an integrated sawmill and pulp and paper mill at Murupara, on the Rangitaiki River, in the Rotorua Forest Conservancy, is a fitting climax to a quarter of a century of imaginative planning, sustained research, and faith and perseverance by the Forest Service in the development of the first sawmill and pulp and paper plant of economic size—as judged by world standards—to be established in the Dominion. It will be to New Zealand what Broken Hill is to Australia. As it is likely to be the most important implementation of policy planning for the next fifty years, it is appropriate to review the various developments leading up to the Government's decision. (2) In 1925 a prominent technician in the world wood-pulp and paper industry in the person of Mr. William Adamson visited New Zealand, inspected the Forest Service stands of insignis pine and other softwoods established in the early years of the century, and studied the woods yielded by these various species. As Technical Director of Walmsleys Ltd., of Bury, England, the largest paper-machinery manufacturers in the Empire, Mr. Adamson had been associated with the designing and building of some of the most famous pulp and paper plants in the world, including the enormous Cornerbrook operation of Bo waters Ltd. in Newfoundland. He had also been responsible for the supply of paper machines to many other important mills not only in Great Britain and North America, but in Finland, Russia, Japan, and many other countries, including Australia and New Zealand. (3) After a careful and searching examination of the transport problems in the Rotorua Forest Conservancy, including the Bay of Plenty district, and of the forest, water, power, and fuel potentialities of the region and surrounding districts, he recommended — (a) That the pulp and paper making properties of the exotic softwoods be determined, more especially for newsprint because of the relatively large quantities consumed and imported, but also for kraft and other products ; (b) That in the event of promising results being secured, the Forest Service plans for exotic-forest establishment should be appropriately expanded on the premise that there will be an ever-increasing demand for newsprint and other papers ; (c) That owing to the extremely high capital investment involved in pulp and paper enterprises a greater variety of species should be planted, and the enormous proportion of insignis pine then being planted materially reduced so that in the event of its decimation by insect or fungal epidemic, supplies of substitute species would be readily available to protect the future of any pulp and paper plants which might be established ; and (id) That no pulp and paper plant should be established until a unit of economic size as judged by world standards could be justified both by continuity of woodsupplies and adequacy of demand. He stressed that the installation of smaller plants on any grounds whatsoever —whether of temporary national selfsufficiency or allegedly as a means of cautiously developing the industry—could only make it quite impossible to' ever develop such plants on any economic basis. He considered that the basic technical principles of all pulping processes were _so well established that the problem of building profitable operations was dependent solely on economic and not technical factors.

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(4) Mr. Adamson's recommendations were adopted and successively implemented. By 1928 it had been proved, through extensive tests both 011 an experimental scale at the famous Madison Forest Products Laboratory and on a commercial scale at the mills •of the Consolidated Pulp and Paper Co. at Wisconsin Rapids, Wisconsin, that insignis pine and other exotic softwoods could be used for newsprint, kraft, and other papers. Kaingaroa State Forest was extended to provide an ample supply of pulp-wood as well .as of saw logs, &c., and ever-increasing proportions of species other than insignis pine were used for this purpose. The Forest Service policy was in strong contrast to that of -the forest-bond-promoting companies, which concentrated largely on the planting of insignis pine, many of them avowedly for pulp and paper production alone. For a •quarter of a century the Forest Service has followed the Scandinavian policy that an -economic pulp and paper industry is only practicable as a supplementary activity to the utilization of saw logs, which probably for all time will remain the most important and basic product of the forest. That principle is sounder to-day than it was twenty-five years ago. It will become more so in the future. (5) Mr. Adamson acted as the Forest Service consultant until his death in 1945, when he was succeeded by his colleague Mr. J. Temperley, also as Technical Director of Walmsleys Ltd. For almost fourteen years until 1939, Mr. Adamson had consistently recommended against any attempt to establish the pulp and paper industry in New Zealand, on the grounds that it was premature and uneconomic. Actually as early as 1928 some consideration was given to the possible establishment of the newsprint industry in New Zealand based on the production of a mixed softwood-hardwood sheet similar to that now being manufactured at the Australian Newsprint Mills, Ltd., at Boyer, Tasmania. Insignis pine was to have been used as the long-fibred. chemical pulp to give the necessary tear and tensile strength, but the body of the sheet was to have been manufactured from tawa wood similar to the Australian eucalypt wood now being used at Boyer. Immediately newsprint prices broke in 1928, however, Mr. Adamson strongly recommended that the idea be abandoned. It was not until 1939 that he felt that the conditions which he had laid down in 1925 justified an early commencement with a newsprint project. As a result of his visit to New Zealand in that year, he was satisfied that there was a sustained yield of sufficient wood and a large enough -consumption of newsprint to warrant the establishment of an economically sized mill. (6) Concurrently, the Forest Service, pursuing its conception of saw log importance in the national forest economy, had been studying sawing practices both in New Zealand and abroad. It had been forced to the conclusion that none of the local sawing practices, •established as they had been on the conversion of large-diameter logs, was either •economical or suitable for the conversion of small-diameter exotic softwood logs, and that only by the adaptation of Swedish log gang saws was there any hope of solution to this problem. As no industrial interests in the Dominion either agreed with these -conclusions or were willing to put them to test, the Forest Service was forced into sawmilling on an unprecedented scale, " unprecedented " in terms of size because the full benefit attached to the use of Swedish-type log gang sawing equipment could not be realized except on a mass-production scale. The ten years interim experience with this equipment not only has completely vindicated the Department's conclusions and fulfilled its' fondest hopes, but has contributed a major improvement to the original plans developed by Mr. Adamson for the Dominion's first newsprint project. Meantime, the Waipa Sawmill is the unchallenged leader of the sawmill industry in the Southern Hemisphere, with its products freely acknowledged to be the Rolls Royce of the exotic softwood trade, whether in New Zealand or on the Australian export market. (7) Though the intervention of the Second World War effectively prevented the immediate establishment of the projected newsprint mill, the delay proved to be a blessing in disguise. Nevertheless, the project was kept under constant review even during the war period, and the departmental consultant revisited New Zealand on several

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occasions and reviewed his proposals from time to time. After Mr. Adamson's untimely death in 1945, Mr. Temperley visited New Zealand in the following year, and re-examined the original proposals in view of the Department's interim experience in the operation of the Waipa Sawmill. This resulted in a complete recasting of the Forest Service proposals whereby, instead of having widely separated pulp and paper mills and several medium-sized sawmills each of them with separate woodyards, steam and power plants, &c., all were centralized on the edge of the Kaingaroa State Forest. The economics which this huge plant made possible both in operating and in capital costs —through integration of raw-material supplies and by sharing of common woodyard, steam and power, and other engineering facilities—were such that the Dominion was assured of a manufacturing unit which could eventually compete on the Australian and similar markets at world parity. Both in diversity of species and in high efficiency of fire protection, the Kaingaroa State Forest was the only one in the Dominion which had sufficient security of raw-material supply to justify such a huge project. (8) The magnitude of the project had, indeed, now attained such proportions that Messrs. Walmsleys Ltd. felt that, although its Technical Directors had endeavoured to act quite objectively as the Department's consultants, the firm was essentially a manufacturer of pulp and paper machinery and must therefore be suspect of a vested interest in the projected plant. For this reason, it recommended that the Department should secure an independent opinion and estimates on the Kaingaroa proposals. This suggestion was followed by the Government, which engaged the Rust Engineering Co., of Pittsburgh, Pennsylvania, to act as consulting engineers and economic planners in reporting upon the pulp and paper section of the plant, and Mr. W. H. Rambo, Industrial Engineer, of Portland, Oregon, to act in a similar capacity in reporting upon the sawmill section of the plant. The Rust Engineering Co. had not only planned, but also designed and constructed, numerous pine pulp and paper mills in the southern States of the United States of America using timbers very similar to the exotic softwoods to be used in the New Zealand plant. Mr. W. H. Rambo, likewise, has supervised the design and construction of important sawmills on the west coast of North America. (9) The initial reports received from both the Rust Engineering Co. and Mr. W. H. Rambo indicated that the Forest Service proposals were soundly based in conception and in fact, so far as raw materials and operating-conditions were concerned. The Government and Treasury, however, felt that the physical magnitude of the project and the amount of money involved, both in the integrated sawmill and pulp and paper plant and in the allied public works, including harbour facilities, railways, hydro-electric extensions, and housing accommodation, made it imperative that the Ministerial head of the Department—the Hon. the Commissioner of State Forests—should make searching inquiries in North America before the Government finally confirmed the decision which it had made in principle to proceed with the project as based upon the Rust and Rambo reports. (10) It was at this time that the Food and Agriculture Organization of the United Nations announced its intention of holding a World Wood Pulp Conference at Montreal between 26th April and 4th May. An invitation for New Zealand to be represented at this Conference was eventually received. As the principal purpose of the Conference was to ascertain the adequacy or otherwise of world wood-pulp capacity to meet current and immediate future demands, which was one of the most important questions upon which the decision of the Government to proceed with the. scheme had hinged, it was decided that New Zealand should send a suitable delegation, led by the Hon. the Commissioner to State Forests, to the Conference. It is anticipated that a separate report will be published on the work of the delegation to the World Wood Pulp Conference at Montreal, but meantime it is possible to report that the Conference concluded that further expansion of the world wood-pulp-producing capacity is justified.

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(11) It is pertinent to remark at this juncture that only by adoption of the completely integrated sawmill and pulp and paper plant as a whole can exploitation of the enormous Kaingaroa State Forest, representing an expenditure of several million pounds, be justified. Anything less, either by way of a smaller integrated unit or of a sawmill alone, cannot be regarded as having any hope of economic success. This is an unequivocal statement stemming from basic economic facts. It must be realized that as a saw log development alone, the Kaingaroa State Forest could not very well be poorer, largely due to the trees having been planted too widely apart, and left without any silviculture treatment in the interim. The only way in which any significantly large saw-log production can be organized from Kaingaroa State Forest is by having an integrated pulp and paper plant which will absorb both the small-diameter and the rough knotty logs which cannot be converted into sawn timber at a profit. Neither would it be economic to extract only the larger straight logs, owing to the much higher cost of logging involved. Admittedly, the project has called for a courageous decision, but, on the other hand, it is doubtful if any project in the world has been submitted to a more intensive and searching examination, both technically and economically, as a basis for authorization. Demand for Forest Products (1) The Dominion is witnessing the early stages of what it is hoped will be a Commonwealth immigration movement of some magnitude, and it is important to examine the probable trend of timber production and to prepare to meet the high level in demand that may prevail for the next twenty years or more. There is little doubt that any significant flow of immigration will greatly increase the demand for all forest products. Large immigration movements always involve a considerable extension of building and other capital construction ; and timber is certain to remain one of the principal buildingmaterials. Immigration is reflected also in a greater demand for consumer goods and general services ; and wood is required in various forms and to a significant extent. Past immigration movements show that per capita timber-consumption rises with an increasing intensity of immigration, and falls as the rate of immigration slackens off. This, of course, is not to imply that immigration is the sole or even principal determinant of the rate of timber usage. By no means ; but the fact that there is an obvious tendency for the unit demand for wood products to rise as the immigration wave gathers momentum indicates that New Zealand is likely to be confronted with a significant increase in the demand for sawn timber and other forest products. Forest policy must be concerned with the problem of satisfying such demand ; and the Service intends to investigate in detail the incidence of production over the next twenty years, the effect of mills cutting out, and what specific action, if any, is required to ensure the ability of the timber industry to meet a high level of demand. That there must be radical changes is obvious. (2) The general position is vastly different from that which existed during the course of the immigration movements of the second half of last century and the early years of the present century. There was then no problem of timber-supply, for timber was so plentiful as to appear more of a hindrance than an. asset. To-day the country faces a prospective demand for timber and wood products far in excess of any previous level of consumption, but with very limited resources remaining of the original indigenous forest, though supplemented, it is true, by a fairly extensive area of exotic forests. The really significant point, however, it that the expansion in timber-consumption will synchronize with a difficult transition period in the timber industry, for, despite the rising demand, production from the indigenous forests must soon be curtailed ; in fact, drastically curtailed. Sawmills will be cutting out at an increasing rate, and fewer of them will be able to secure further areas of indigenous timber. Nor can such units move automatically or easily to the exotic forests, for their sawmilling equipment and technique are not suited to the relatively small type of log characteristic of the latter forests.

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(3) The necessity for a planned reduction in output from the indigenous forests hasbeen foreshadowed in earlier issues of this report, but its implementation has, of necessity, been deferred pending the wider development of more mature exotic forests. The fact that it is deferred, however, does not mean that it is any the less certain. During the year ended 31st March, 1949, the total output of indigenous species was just over 300,000,000 board feet; and at that figure the indigenous forests supplied almost 70per cent, of all sawn timber consumed within New Zealand. Whether or not the annual cut will have to be reduced to the low level of 50,000,000 board feet by 1965 as predicted by the first Director of Forestry in his annual report for the year ended 31st March, 1925, cannot be determined until the national survey of forest resources is completed in about five years' time. Whatever the reduction, it will be large ; and it is being emphasized at this juncture so that sawmillers and wood-users will understand that the status quo in timber-production cannot continue ; no amount of wishful thinking can alter the figures of the national forest balance-sheet. The sawmilling industry ismost keenly affected, and the implications of the policy of rationing indigenous timber need to be appreciated, for mills will, in increasing numbers, cut out, and find they have .no option but to close down and cease business or switch their operations to the exotic forests. As far as indigenous timber is concerned, the remaining State forest areas must be rationed ; and, unfortunately, the fact can neither be circumvented nor rendered palatable. (4) The decline in the available supply of indigenous timber will not only have a revolutionary effect on the sawmilling industry, but it will also have a major effect on the wood-consumer. In general, the New Zealand wood-using public has been extremely fortunate in having at its disposal large quantities of softwoods which are of wide utility,, able to stand abuse, easy to season, and largely free of defects. The history of timber use in this country shows that in the days when kauri and totara were available in large quantities timbers such as rimu and matai were relegated to minor uses. As kauri and totara supplies dwindled, rimu and matai were substituted for purposes for which kauri, and totara had previously been considered essential. We have now reached the stagewhen rimu and matai are becoming increasingly scarce ; and exotic speci'es will have tobe substituted in many cases where rimu and matai have been considered essential. Wood-users need to appreciate the realities of the position and make their plansaccordingly. (5) Speaking generally, the future of the sawmilling industry lies more and more in the exotic forests; and, apart from a certain measure of instability and dislocation during the transition period, the future promises far greater stability and continuity of operation to both employer and employee than either have enjoy ed in the past. A high level of timber demand seems to be assured for many years, particularly if the immigration movement continues and develops, in which event it is anticipated that within approximately fifteen years the total demand for sawn timber alone will be as high as 600,000,000 board feet-annually. In addition, the export trade is expected within a few years to eclipse even the high figures immediately preceding World War I, when sawn exports almost reached 100,000,000 board feet. Production from the exotic forests, therefore, has to be geared in the near future to a total potential demand which will be approximately double the entire annual output between the wars. The exotic forests have the productive capacity, but, as stressed before in these pages, they are not amenable to developmentby the methods commonly applied to the indigenous forest. The Forest Service has consistently drawn attention to the need for different and improved sawing, handling, and merchandising techniques when dealing with the exotic timbers ; and it is believed that the industry generally has been impressed with the achievements of the Forest Service Waipa Mill in this respect. The fact that the exotic forests must be systematically developed to yield approximately 500,000,000 board feet of sawn timber annually for domestic consumption and up to 150,000,000 board feet for export within about fifteen

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years —and that they will support permanent industrial installations and communities — is indicative of both their importance and the scope they offer for industrial planning on a permanent basis. Export Markets (1) Timber and other forest products will figure prominently in the export trade of the near future. Geographically and otherwise the logical market is Australia, which has always been a large importer of softwoods and pulp products ; and forest products promise to be the only important item which can be used effectively to redress the adverse balance in the trans-Tasman trade. The decision of the Government to proceed with the •establishment of a sawmill of large capacity integrated with a pulp and paper mill (and of various forestry companies to produce both pulp and sawn timber for export) will provide an excellent opportunity for New Zealand not only to improve its overseas trade position, but also to make an important contribution towards Commonwealth security in the South Pacific. (2) In the case of sawn timber, it is of the utmost importance that New Zealand should pay the strictest attention to the question of developing a very much superior standard of merchandising to that which has characterized its export trade in the past. The principle suppliers in the international timber market, especially those in Baltic -countries, have established a reputation for well-graded, accurately-sawn, square-docked, branded, and packaged timber of really good quality ; and if New Zealand is to develop and retain overseas timber markets it must be prepared to adopt comparable standards •of merchandising. At the time of going to press, an official delegation is visiting ►Scandinavian countries on the occasion of the World Forestry Congress at Helsinki; .and this question of production and preparation of sawn timber for export is regarded .as so important that arrangements have been made for the members to study the methods •employed by some of the leading timber exporters of Finland, Norway, and Sweden. The delegation is composed of a member of the Forest Service, and one representative from both the Sawmillers' Federation and Timber Workers' Union ; and the experience •of this delegation should be extremely valuable in developing very much better standards ■of export in New Zealand. Indigenous Silviculture ft (1) Recent ecological investigations, particularly the classification of extensive forest areas undertaken by the national forest survey, suggest that much of our indigenous forest is in an unstable condition. Present distribution and composition appear to reflect a warmer and more humid period in the past than do present climatic conditions. In particular, the bulk of the podocarp forest displays symptoms of overmaturity and stagnation with the virtual absence of young growth. With the harvesting of these over-mature stands, conditions are such as to inhibit re-establishment of the same type of forest, the second crop usually consisting of hardwoods of little value. The podocarp forests seem vigorous only on certain lowland sites, most of which have a high farming value debarring them from permanent forestry. Only on Stewart Island and where it occurs in mixture with red and silver beech does rimu show any appreciable regeneration capacity in unmanaged stands. This instability inherent in most podocarp forests, coupled with the intractability of most species to normal silvicultural measures, prohibits any reliance being placed on them for a large permanent yield of softwoods. Although present indications are that they will be capable of management only on a few limited sites, sustained research may ultimately extend these sites on a significant scale ; •elsewhere the residual hardwoods may yield a worth-while crop, or where these consist of inferior species the introduction of shade-bearing exotics may be necessary. (2) The beech forests present fewer difficulties, having much more favourable silvicultural characteristics than any of the podocarps. The major problem is again to

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determine in which forests the various species of beech exist by virtue of present climate and in which they are unstable survivors of the past, for it is only in the former that the desired species are aggressive and capable of sustained yield management. (3) The silvicultural possibilities of kauri within its rather restricted natural range have been amply demonstrated, and there is no doubt that it can be successfully managed in perpetuity. All State-owned kauri forests have already been placed under working plans, and the policy of consolidation of existing areas and acquisition of potentially productive forest remnants is being continued. Professional Forestry Training (1) During the year the New Zealand University Senate approved the establishment of a School of Forestry at Auckland University College. This proposal is based, in the main, on the advice of Professor S. M. Wadham of Melbourne to provide a four-year undergraduate course leading to a degree in forestry. It has been suggested that part of the course should be taken in a forest environment away from the University college, probably at Rotorua. To the extent that the University has met the desire of the Forest Service for a still higher standard of forestry education by also providing for a Masters degree, the Department is very appreciative ; but failure to provide for the whole of the professional work being located in a forest and not a University environment negatives the value of any local forest training, however high it may otherwise be. (2) The Forest Service has found no reason to alter its opinion that a four-year undergraduate course is inadequate to equip a professional forester with a satisfactory background of scientific training as well as sufficient instruction in forestry. The view that a professional forestry school should be organized on a graduate basis with a suitable scientific degree as a prerequisite has become more widely accepted in the Englishspeaking world. After spending some weeks in New Zealand, Dr. H. H. Chapman, Emeritus Professor of Yale University and a leading figure in American forestry education, was emphatic on this point. In sharp contrast to the New Zealand University proposals, he advocates a four-year course in basic sciences in place of the three preferred by the Forest Service and only two recommended by Professor Wadham. It is also noteworthy that the recent international Forestry and Timber Utilization Conference for Asia and the Pacific favoured graduate forestry training following a science degree. (3) If agreement to the establishment of a graduate school at Rotorua cannot be obtained, it may be preferable to follow a policy of training selected science graduates overseas rather than adopt the University's present proposal for an undergraduate school —a proposal which fails to provide the standard of forestry education advocated by this Service. Already it has become necessary to send junior professional officers overseas—one to Oxford and three to Canberra—and more must be sent before a local school could be organized. (4) There are considerable advantages in overseas training : students gain a more liberal education and establish professional contacts which are of inestimable benefit in their subsequent careers ; advantage can be taken of particular courses and forest conditions available in the best forestry schools in the English-speaking world and possibly in Europe, and the Forest Service will benefit from the diversity of experience and training. But one cannot ignore the disadvantages. Some excellent students may, for family or other reasons, be unable to go abroad ; it will be more difficult for the private student or the staff of local body or company forestry organizations to obtain professional training, while in times of financial stringency overseas bursaries are probably more prone to retrenchment than an established school.

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Forest Employment (1) One of the most disturbing features of forest operations is the difficulty of securing the required personnel; other avenues of employment are attracting the. best workers, and the type of man most likely to develop into a skilled and efficient forest employee is not available to the Forest Service. During the critical man-pOwer shortage of the immediate post-war years it was logical that employment difficulties should be accepted with little question, but the problem can no longer be dismissed so lightly. It is obvious that there are fundamental reasons why forestry continues to be at a disadvantage in the labour market. The Forest Service places a good deal of reliance on its departmental staff-training schemes as the solution to its general staffing problems, and these training schemes are proving their value and giving very good results. So far, however, it has not been possible to widen the training scheme to include working personnel, but even if this could be arranged immediately, the setting-up of a training scheme would not in itself give the required results. The reasons underlying the exceptionally high turnover in forest employment reported in Chapter VIII obviously go deeper than this and therefore call for some inquiry. (2) One of the contributing causes is the fact that, so far as the exotic forests are •concerned, forest work has suffered from a widespread impression that it is seasonal and temporary rather than continuous and permanent; hence its failure to appeal to the man interested in a career with steady and permanent employment is not surprising. This is a misconception which needs to be corrected, inasmuch as it is only planting that is seasonal, and the planting boom is past. Management and utilization activities, on the other hand, offer year-round work of a permanent and varied character'; consequently it is no longer the casual worker who is sought, but rather men who will take up forest work because they are convinced it offers them stable employment of a nature which inherently appeals to them. In other words, forestry now presents an opportunity for the skilled craftsman. (3) Another contributing factor undoubtedly has been a general impression that forest employment means living conditions of a primitive kind as measured against urban standards. That undoubtedly was true up to the end of the depression of the early " thirties," but conditions have been greatly improved, and the day of the tent has gone forever. For single men either cabin or hostel accommodation with central facilities for meals is provided. The Standard Forest Service cabin with modern builtin furniture has been universally acclaimed as the best of its kind in either Australia or New Zealand. Married accommodation is limited, it is true, but an active housing programme is in operation, and houses are being built to the standard of State rental houses. Greater emphasis must be placed »n the provision of married accommodation, however, for it is the home which is the foundation of any stable community. This is well recognized by the permanent forest industries in Scandinavia, some of which, in addition to donating land for the building-site, make considerable monetary grants to their employees to enable them to have their own homes. Linked with any improvement in general living conditions there must also be an improvement in the amenities available ; sport and recreation, amusements, facilities for shopping, educational and medical services, &c., are all necessary to overcome that inherent lack which prompts people to shun forest employment for work nearer town. These things have not been overlooked : the standard of amenities has been considerably improved in recent years, and is still being improved as the development of permanent forest communities proceeds' (4) Finally there is the question of comparative rates of pay. Other avenues of employment can and do offer better wages, and this places forestry at a disadvantage in the labour market. It is essential, therefore, that the wage level be improved if an efficient and stable forest personnel is to be built up ; conversely, a high wage level is justified only if it results in the acquisition and retention of skilled craftsmen.

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(5) It is believed that an approach along the following lines offers the best possibilities of a real solution : the development of the spirit of tradition in employment emphasis on the continuity and permanence of forest work and its demand for skill ,' a significant improvement in the rates of remuneration ; and living conditions and amenities comparable with urban standards, with particular emphasis on houses for married personnel. If tradition in employment is the basis on which to build a stable staff of skilled craftsmen, the starting-point is where youths with an inclination towards outdoor work leave school and look for a likely opening. It is hoped, therefore, toreserve some hostels on the forests for youth labour with "the objective not only of attracting boys straight from school and giving them an opportunity to develop an enthusiasm for the forest life and forest work, but also of providing technical training in suitable subjects. (6) Negotiations will be opened with youth organizations to determine the best way of initiating such a scheme and developing it. Short-term forest camps during school vacations also might be a means of developing in school-boys and Boy Scouts that appreciation of outdoor life in general and forest life in particular which must form the real basis of a stable forest personnel. Existing, recruiting methods have been welltried and found wanting : radical changes seem to be required if forest operations are ever to be fully and efficiently staffed, and the suggestions put forward here merit a serious trial. Legislation Amendments enacted since the passing of the Forests Act, 1921-22, are now contained in some twelve different statutes. There is an urgent need for consolidation of the forest law in order to reduce its complexity and to rearrange its provisions in a more simplified form for administrative interpretation. A Bill along these lines has been drafted, and while it does not contain any major additional provisions, the opportunity has been taken to remedy defects revealed during past administration and to provide for extended activities of the Service. CHAPTER lII—MANAGEMENT DIVISION Inspector in Charge : Mr. F. W. Foster Eorest Resources (1) Land. —Two categories of State forest are recognized : provisional State forest,, which may be withdrawn from reservation by Proclamation for settlement or other specific purposes : and permanent State forest, representing land which cannot be alienated save with the consent of both Houses of Parliament. Figures for the past year are as follows : Acres. Area placed under reservation .. .. .. 71,235 Withdrawn from reservation .. .. .. 1,792 Provisional State forest permanently reserved .. .. 33,486 Total area under State forest as at 31st March, 1949 .. 9,355,130 Other areas administered as State forest as at 31st March, 1949 .. .. .. .. .. .. 27,057 The areas withdrawn from reservation consisted of—--1,231 acres for settlement. 232 acres for scenic reserves. 244 acres for water development purposes. 31 acres for roads. Detailed figures for the past year according to conservancies are given in Appendix I, which also shows the year-to-year changes for the country as a whole for the period 1920-48.

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(2) Timber. —Growing stock assessments of indigenous and exotic forests have not yet been completed, but in some conservancies they are sufficiently far advanced to enable an estimate to be given. The following figures will be subject to correction when the work is completed :

The Southland estimate, made by the national forest survey (see Chapter V), is further subdivided into — Cubic ft. Hardwoods (beech, &c.) .. .. ... 123,000,000 Softwoods (rimu, &c.) .. .. .. .. 57,000,000 180,000,000 The above estimates include forests on lands of all tenures, not only State forests. A broad provisional estimate of the total resources of indigenous podocarp species has been submitted by the national forest survey; this estimate, which is based on incomplete data, indicates that the remaining supply of podocarp species on lands of all tenures is probably in the vicinity of 5,000,000,000 board feet of standing timber. Silviculture (1) General. —Despite continued labour and accommodation shortages, considerable progress is reported. The aggregate acreages dealt with under planting, release cutting, high pruning, and thinning showed a 50-per-cent. increase over those of 1947-48 and a 300-per-cent. increase over the areas covered in 1946-47. The low-pruning acreage has remained steady over the past three years. Immigrant labour has again accounted in the main for the increased scale of silvicultural operations. In view of the necessity for commercial costing of utilization operations, including felling and extraction, roading, and incidental work, and of the importance of maintaining fire-preventive measures at the highest possible standard, it is perhaps natural that such works should claim the major portion of the most efficient labour. Such has been the tendency during recent years, leading to the inevitable, though regrettable, result that the forest stands which are being protected from fire and exploited on the best standards available are, owing to force of circumstances, being neglected silviculturally. As mentioned in the previous report, large areas are now too old to respond to silvicultural treatment (mainly pruning and thinning) ; while stands that would still respond have to remain untended due solely to the lack of sufficient labour (and accommodation) to deal with the very large areas requiring treatment. So large are the areas involved that even were adequate labour available, it would be necessary in many cases to leave convertible thinning logs on the forest floor to rot. In this connection, thinning by mechanical felling is being investigated with a view to economizing man-power. (2) Natural Regeneration.—Natural regeneration of worked compartments of P. radiata in Rotorua and Canterbury Conservancies is progressing satisfactorily, with the prospect of complete restocking in many cases. During the year 231 acres were classed as fully stocked with exotic trees by natural regeneration, bringing the total area so stocked to 1,058 acres (836 acres in Whakarewarewa and 222 acres in Kaingaroa Forest).

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Conservancy. Indigenous Forests. | Exotic Forests. Cubic Feet. Cubic Feet. Nelson Not yet assessed 25,000,000 Canterbury Not yet assessed 80,000,000 Southland 180,000,000 Not yet assessed

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11l all cases the natural regeneration Las followed on clear-felling, and no shelterwood systems involving the removal of the mature overwood in stages have so far been commenced on any appreciable scale. Problems of correct treatment have arisen, and investigation is proceeding. Advance growth is reported from both exotic and indigenous forests throughout the country, and where of value silvicultural tending is applied, such as release cuttings of volunteer kauri, supplemented by plantings to increase the stocking ; and pruning .and thinning of P. muricata (blue variety) at Hanmer. Regeneration of red beech in Nelson Conservancy has been achieved following the removal of the ferns and shrubs comprising the ground cover. (3) Inter planting.—An area of 344 acres was interplanted, as compared with 10 acres in 1947-48 and 5 acres in 1946-47. An investigation of earlier work in this direction is in train, and the results will form the basis of a policy directive. At Waipoua, kauri was interplanted on 20 acres (included in the above area) of P. tceda and P. echinata which has been pruned and thinned. This was -done pursuant to a practice explained in last year's report of using young pine stands as " nurses " for kauri seedlings. (4) Afforestation. —The areas planted, blanked, and replanted during the past three years are given below, and the planted area is shown in greater detail in Appendix II: —

In addition, 705 lb. of P. radiata seed were direct sown in Kaingaroa Forest on an area of 873 acres. (5) Seed. —Seed collected, both exotic and indigenous species, for the same period was : lb. 1946-47 .. .. .. ..3,284 1947-48 .. .. .. ..3,120 1948-49 .. .. .. .. 2.591 During 1948-49, 265 lb. of seed were sold. Import and export of tree seeds carrying insect infestation or. disease are now prohibited by statute, and it is proposed to take steps for applying similar safeguards respecting locally-collected seed for local use. Furthermore, the desirability of introducing, if possible, some system of certification of seed is under consideration, with the object of ensuring that seed is of the best strain and of a high standard of quality ; and to this end selected seed plantations are to be built up. Thermostatically-controlled seed-storage chambers were installed during the year on two State forests in the North Island and one in the South Island. . (6) Nursery Operations.—Seed sown in nurseries amounted to 1,934 lb., which germinated to yield 10,080,000 seedlings. A total of 6,760,000 trees were lifted for planting; and nursery stocks at the end Of the year were 22,170,000. A high standard of nursery technique is being maintained and stocks are severely culled to ensure that only trees of the highest quality are planted out. Where necessary, whole surplus beds are thrown out. As a result of these precautions the actual yield of trees per 1 lb. of seed is often considerably lower than the original germination rate per 1 lb. During the year a request received from a Catchment Board to take over cull trees for planting was refused.

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Year. Planted. Blanked. Replanted. Acres Acres. Acres. 1946-47 834 685 925 1947-48 2,819 956 883 1948-49 4,563 1,334 832

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(7) Tending of Indigenous Forests. —Release cuttings for liberation of kauri advance growth were carried out over 95 acres in Auckland Conservancy. Thinnings, with harvesting, have been carried out in beech stands in Nelson, Westland, Canterbury, and Southland Conservancies, the species represented being red, hard, black, and silver beech. (8) Tending of Exotic Forests.—Areas dealt with in the course of normal tending operations are shown below for the past three years ; but more detail is given for the current year in Appendix 11, which also gives statistics for earlier years. The area clear-felled (shown in this section for convenience) includes 172 acres of salvage of wind-thrown trees.

Forest Protection (1) Animal Damage: General. —Opossums, rabbits, and deer remain the most serious forest pests. Other animals such as pigs, goats, and wild cattle are also causing damage, but this is satisfactorily limited by existing control measures. The recorded numbers of vermin destroyed in State forests for the past three years are as follows :

(2) Opossums.—Opossums have aroused concern following reports of a considerable increase in their population and range, and the damage done, in both Islands. Exotic forests have been affected most, the young shoots of several species being chewed and nibbled off. In indigenous forest a preference for young shoots of rata has been reported by parties of the national forest survey. Attempts to control opossums by poisoning to supplement contemporary trapping methods are being made in Nelson and Southland Conservancies. The large increase in the number of opossums killed (preceding paragraph) comes mainly from the inclusion this year of skins taken by trappers in State forests in the Wellington Conservancy. (3) Rabbits. —Rabbits remain a serious problem at Gwavas Forest, where they were responsible for losses up to 60 per cent, in the 1948 planting. It is anticipated that, despite netting of plantation areas and continued rabbiting, they will be a major vestablishment problem on Esk Forest, in Hawkes Bay. Rabbits are still very numerous in Southland Conservancy, especially on marginal lands adjoining Naseby, Berwick, Herbert, Pebbly Hills, and the Longwood Forests. An intensive programme of trapping and poisoning on all affected forests is being pursued with good results. The Rabbit Destruction Council, which has now been operating for a full year, has already achieved a measure of uniformity in methods of administration and attack upon this pest. Though lands of the Crown are outside the jurisdiction of the Council, excepting with the consent of the Minister concerned, the Council is assured of the co-operation of the Forest Service.

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Year. Release Cutting. Low Pruning. High Pruning. Thinning. Clear-felling. Acres. Acres. Acres. Acres. Acres. 1946-47 677 6,556 932 1,055 601 1947-48 1,389 6,743 1,983 1,245 481 1948-49 2,722 6,728 2,247 2,094 651

Year. Rabbits and Hares. Opossums. Deer (All Species). Pigs. Goats. Others. 1946-47 34,532 4,329 1,534 1,538 238 1947-48 139,507 6,042 2,956 3,225 294 145 1948-49 99,411 69,968 2,785 3,419 510 6,614* * Includes 4,937 rats.

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(4) Deer.—Deer show a slight increase in indigenous forest, but continual shooting is keeping their numbers in check. In some of the high country in Southland, however, their incidence is serious enough to endanger the well-being of certain areas of protection forest. (5) Insect Damage.—General: With the exception of that caused by the steel-blue sawfiy (Sirex noctilio), insect damage has been slight, as in the past, and most local attacks reported have been of limited extent and brief duration. A leaf moth (Epichorista persecta) caused defoliation of kauri seedlings in a nursery at Waipoua. Arsenic spraying was effective. The bronze beetle (Eucolaspis brunneus) attacked young Douglas fir underplants in a larch stand in Rotorua Conservancy, causing a general set-back to the trees and some mortality. The cicada, Melampsalta cingulata, has been very numerous and damage to leaders of Douglas fir and Cupressus macrocarpa may be expected. A parasitic fungus, Isaria sp., appears to afford some measure of control by destroying large numbers of nymphs. The' Douglas-fir seed chalcid fly (Megastigmus spermatrophus), previously confined to Otago, has been found abundantly in Rotorua Conservancy. Transfer of Douglas-fir seed from the South Island to the North has been banned within the Forest Service for over fifteen years, and the reason for the insect establishing itself in the Rotorua forests is not known. The forest pathologist reports that examination of seed in other localities has failed to reveal additional centres of infestation. (6) Steel-blue Sawfly : Appearances of Sirex noctilio have been reported from most conservancies, brief periods of high incidence being experienced in Nelson, Rotorua, and Auckland. The most serious spectacular outbreak occurred in Rotorua district, where an investigation made in the spring revealed that many trees had been killed by a fungus associated with the insect, young to middle-aged stands of insignis pine in both State and private forests being mainly affected. The forest pathologist reports (Chapter V) that the epidemic probably arose from climatic factors which were favourable to the insect. Climatic conditions this year have been mild, no extremes being experienced. In the Rotorua Conservancy high temperatures at the end of October encouraged the emergency of many insects, but no high temperatures were recorded between Ist November and 9th December, and there was considerable rainfall. These conditions are of extreme importance in regulating the insect population, and also the susceptibility of trees to attack and their capacity for recovery if attacked. Compared with last year there have been few days ideal for Sirex oviposition, and it may be expected that damage from this cause will be reduced. (7) Damage by Fungi.—General: No serious outbreak of fungal disease was reported and State forests suffered little damage during the year. The honey fungus (Armillaria mellea) was observed in Whakarewarewa Forest, where some naturally regenerated insignis pine suffered attack. In Wellington Conservancy this fungus continues to cause mortality amongst the more susceptible species used for interplanting indigenous forest. Sample plots in Cupressus lawsoniana at Taurewa show mortality rates at 8 per cent, to 9 per cent, in four and a half years. In the area of Pinus radiata near Lake Taupo burnt in 1946, some damage to the dense regeneration which has appeared was caused by Diplodia following frost injury, and by Armillaria mellea spreading from dead trees. Timber being salvaged in Pureora State Forest from the area burnt in 1946 showed damage to the sapwood by ten species of fungus, in addition to sap-stain. Stereum hirsutum, Coriolus cinnabarinus, Meruleus sp., and Stereum spp. caused most of the damage. An uncommon heart-rot of kauri found at Waipoua, and a fungus causing wilt on seven-year-old P. laricio at Golden Downs Forests,, have been submitted for examination. (8) Manuka Blight: The " manuka blight," which has aroused interest in North and South Canterbury recently, is particularly abundant near Ashley Forest. Its effect on exotic forest trees has so far not been found to be in any way detrimental. This

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blight," caused by a combination of insect and fungus, is welcomed by a great number of se'ttlers as a means of eradicating young manuka invading pasture lands. The indigenous manuka, however, is of such great value, both as a nurse for forest seedlings .and as an excellent vegetative cover for preventing soil erosion, that the State Forest Service has constantly deprecated suggestions that the " blight" should be assisted towards spreading over the whole Dominion. Eradication of th% manuka would lead -to soil erosion on a disastrous scale. (9) Climatic Damage. —The weather during the year was unmarked by extremes, the winter being mild in most areas ; consequently, damage to State forests from climatic .and other natural causes has not been severe. Winds of dangerous violence have not 'occurred, though local damage has been reported from Waitangi, where P. pinaster, P. caribea, and P. taeda growing on exposed ridges suffered breakage of leaders and lateral branches. On Kaingaroa Forest a 5-acre plot of Douglas fir suffered wind damage when aP. radiata windbreak was removed, and further wind-throw seems- likely. Slight wind damage to pines (P. caribea, P. taeda, and P. patula) occurred in Rotoehu, where some trees were wind-blown. Similar damage has been reported from Hanmer and Balmoral Forests, Canterbury. January frosts in Southland affected areas of recently-planted ash and poplar in Berwick and Beaumont Forests, the species being sited in valley bottoms. Similar damage occurred to two-year-old spruce in Milton Nursery. At Taurewa, November .and December frosts nipped the new growth of 1948 planting P. laricio, which species has suffered similarly in this area in the past. An isolated report of snowbreak and a little flood erosion have been reported from Southland and Westland respectively. Erosion on a small scale in protection forests in Southland has been, reported, and it is noteworthy that the primary agents are browsing pests such as deer and goats. Reduction in their numbers will see the disappearance of beaten tracks and bared ground, and subsequently a return to normal forest conditions. Fire damage, &c., is dealt with in Chapter VIII under " Fire Control and Communications." (10) Forest Offences. —There were 38 convictions for offences against the forest laws. Fines imposed amounted to £73 10s., and costs and damages totalled £1,968 13s. Bd. Particulars of these offences are given in Appendix IX. The heaviest fine this year, £l5, was imposed for operating an engine not fitted with an efficient spark-arrester, and in this case the sum of £36 10s. 6d. was recovered as fire-suppression costs. There were 8 convictions for the unlawful cutting and removal of forest produce, two involving large amounts of produce valued at £1,428 19s. Id. and £296 19s. 6d. respectively. Forest Mensuration The following table shows the number of areas and the quantity of standing timber appraised by conservancy staffs for sale during the past three years :

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Year. State Forests. Maori Forests. Other Forests. Total. Board Feet. Number. | Board Feet. Number. Board Feet. Number. Board Feet. 1946-47 1947-48 1948-49 129 160 181 116,697,000 121,532,000 118,755,000 1 22 24 26 43,567,000 54,239,000 56,939,000 19 14 33 7,756,000 6,295,000 11,067,000 168,020,000 182,066,000 186,761,000

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The quantity appraised during 1948-49 was the greatest in any single year since the inception of the Forest Service. The sampling method of appraisal was used in the mensuration of the following quantities : Bd. ft. 1946-47 .. .. .. .. •• 11,407,000 1947-48 * . .. .. .. •• 26,512,000 1948-49 .. .. .. .. •• 11,113,000 The reduction in this year was due to the greater number of areas for which the sampling method was not suitable. For the approximate estimation of timber stands for possible future timber sales, eight reconnaissances were made covering 4,090 acres, disclosing estimated stands of 34,500,000 board feet. To check the appraisal work of field staff, the Check Appraisal Officer carried out eighteen checks, while Conservators' staffs made sixteen checks. Forest Working Plans To ensure continuity in the execution of a deliberately determined policy or object of management, a written working plan containing a carefully specified set of physical prescriptions is prepared for each forest and supported by at least one map. In forest management, continuity is essential in view of the long-term nature of forestry, and the written working plan is necessary in view of unavoidable changes in forest staff during the life of a tree stand. In New Zealand the preparation of a working plan for each State forest is required by statute ; plans are approved by the Minister, and may be altered only by the Minister on the recommendation of the Director of Forestry. The number of State forests is 627,. though this number is capable of reduction by amalgamation of adjacent, and in some instances contiguous, State forests. At the present time 54 State forests are under management pursuant to statutory working plans. In the past, working plans were prepared on a full-dress scale, including a fairly elaborate description of the forest as to both history and existing conditions, and a fully developed statement of objects of management and of prescriptions designed to achieve those objects. Following the strong recommendations of the Fifth British Empire Forestry Conference, it was decided to accelerate the completion of working plans by preparing skeleton or abbreviated working plans for the numerous State forests which are managed on a broad extensive basis —as distinguished from those forests which are managed on an intensive scale, and for which more elaborate Working plans are necessary. Accordingly, standard headings were chosen under which only the bare essentials are ta be recorded in each abbreviated working plan, and 20 such working plans are at present at various stages of completion. Of these, the majority are so designed as to implement the policy referred to in last year's report —namely, of deferring for some years the felling of indigenous forest stands or of confining such felling within planned limits. In this connection it is desired to add that there are 56 " managed State forests " (localities are given in Appendices). These forests are not all under forest management in the narrower technical sense of management for sustained yield, accompanied by a proper arrangement of age-classes in each forest. They are rather staffed forests* or forests to be staffed with forest officers when adequate field staff becomes available. Of the 56 " managed forests," 43 are at present controlled by forest officers residing; on the forests. For each " managed forest " a virtual skeleton working plan was written in the year 1946 as a basic report for Government ten-year plans, each basic report briefly summarizing the past history of the forest, existing conditions, the policy intention, and the works proposed. These requirements are being adhered to in so far' as available labour and accommodation will permit, and are being incorporated, with the necessary amendments, into working plans as required by the Forests Act.

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During the year, working plans for Whirinaki, Skyline, Pukepoto, Murupara, and Naseby Forests were compiled, and the first revision of the plan for Hanmer Forest is now ready for approval. In addition, work was commenced on the preparation of working plans for Pouakani, Pureora, Tararua, Mount Robertson, Herekino, Raepahu, Wharepuhunga, Okahukura, and Mangaokewa Forests (indigenous) and Gwavas and Pebbly Hills Forests (exotic). Considerable progress was made in assessment of growing stock in exotic forests. Field-work covering roughly 500,000 acres in all was completed during the year, and office computation of this work is now in progress. Volume tables were again used extensively to calculate quantities, but for some areas data from sample-tree measurements were used. Timbeb Sales (1) State Forest Block Sales and Permits. —Details of indigenous timber sold during the year for removal from State forests, exclusive of log sales, are given below for the past three years :

Method of sale was as follows : Bd. ft. (1) By appraised quantities .. .. .. 127,714,000 (2) By log scaling .. .. .. .. 5,745,000 (3) By mill output .. .. .. .. 17,422,000 The last item was chiefly under Wardens' licences. In addition, exotic timber to the extent of 1,918,000 board feet valued at £6,300 was sold and removed from State forests during the year. The greater proportion of this represented sales of wind-thrown timber to a licensee operating in Balmoral State Forest, who finally abandoned operations in March, 1949. The failure of the licensee to fulfil commitments in this area has already resulted in the loss of a large area of the wind-thrown timber, but the Forest Service will salvage as much as possible of the timber which remains exploitable. Minor indigenous forest produce sold under permit was valued at £14,800, and exotic forest produce sold under permit was valued at £4OO. (2) Outturn from State Forests. —The quantity of milling timber removed under log sale agreement, licence, and permit from State forests totalled 180,198,000 board feet.-

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Species. 1948-49. 1947-48. 1946-47. Rimu and miro Matai Totara Kahikatea Tawa Beech spp. Others Bd. ft. 112,056,000 11,374,000 5,483,000 4,956,000 5,509,000 9,402,000 2,101,000 Bd. ft. 86,514,000 10,820,000 4,780,000 7,728,000 5,650,000 10,'973,000 1,271,000 Bd. ft. 84,615,000 6,910,000 5,154,000 8,461,000 2,088,000 1,910,000 803,000 Total quantity 150,881,000 127,736,000 109,941,000 Total value £264,200 £194,900 £190,200.

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The following minor forest produce was removed under permit: —

Indigenous and exotic timber extracted by the Forest Service itself is dealt with in Chapter VI, Section (1). Soil Conservation At the present time when the Forest Service is embarking on extensive schemes for the production and utilization of timber from exotic forests, there is a tendency to overlook the less spectacular but equally important work which is being undertaken in connection with protection forests. The use of vegetation in stabilizing soil and regulating stream-flow has long been recognized ; and the management of forests on the steeper hill country, primarily for protection purposes, is regarded as one of the major responsibilities of the Service. Out of a total of nearly 9,250,000 acres which comprise the forest estate, it is estimated that over 6,000,000 acres can be classed as essentially protection forest. Much of this land consists of mountain-tops and precipitous and inaccessible back country where extraction of timber is impossible ; and the value of such forest lies in the protection which it affords to the highly productive farmingland below. In some instances, however, extraction of milling timber, where may be permitted on a restricted scale if there is no danger of accelerating erosion. The chief enemies of these forests are fire and browsing animals ; and the judicious removal of mature trees, where this is possible, does not adversely affect the valuable properties which are associated with protection forests. All timber-sale proposals on State and Maori-owned lands are subject to careful scrutiny from the viewpoint of possible erosion. Where erosion is likely to follow felling and extraction, the proposal is either refused or modified in the case of State forest areas, or made the subject of strong representations to the Maori Land Court or Maori Land Board respecting Maori-owned land. The Forest and Rural Fires Act, 1947, which was sponsored by the Forest Service, provides adequate means for the prevention and control of fire on protection forest areas ; but the position with regard to animal pests gives cause for grave concern. In Southland Conservancy, where ecological research is being carried out in the indigenous beech forests, evidence points to the ultimate disappearance of the forest unless deer can be brought effectively under control. This conclusion has Dominionwide application and merits very careful attention. Damage by opossums and goats

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— 1948 -49. 1947 -48. 1946 -47. Indigenous. Exotic. | Indigenous. Exotic. Indigenous. Exotic. Number. Number. Number. Number. Number. Number.. Poles 10,300 9,600 5,000 Strainers 23,300 21,000 17,600 Posts and stakes 565,700 430,600 357,600 16,000 Stays 13,700 8,100 7,300 Sleepers 14,100 20,000 17,000 8^400 House blocks and pole blocks 17,700 14,300 5,900 Battens 1,164,800 1,136,100 9,300 982,800 Bridge stringers 40 10 170 Survey pegs 500 Firewood (cords) 900 50 600 " 30 360 j ' 260 Mining timber (pieces) 55,000 9,700 61,400 12,700 54,600 3,700 Rails 240 Chopping-blocks 100 1,200 100 Tomato-stakes 1,400 38,600 Shingles 184,500

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is also serious, and reference must be made to the destruction of the forest along the boundaries of unfenced " bush-edge " reserves as a result of browsing by domestic sheep and cattle. The introduction of browsing animals into New Zealand has indeed had a profound effect on the vegetation ; and the Forest Service is co-operating with the Departments of Internal Affairs and Scientific and Industrial Research in investigating the problems which these forest pests have created. The policy of retiring to forestry land-use submarginal land which is unsuitable for agriculture has been steadily pursued, and the assistance given by the Department of Lands and Survey in negotiating the acquisition of land in this category has been particularly helpful. During the year seven areas totalling 46,000 acres were taken over, including one of 8,000 acres which was donated by the owners. These, areas will be largely locked up, and regeneration encouraged by extermination of pests and exclusion of fire. Throughout the year the Forest Service has taken an active part in the work of the Soil Conservation and Rivers Control Council and the twelve Catchment Boards now in operation. The Service is represented on the Council and on all the Catchment Boards by senior forest officers ; and, in addition, a professional forester, seconded from the Service, is employed in an advisory and liaison capacity with the Council. Owing to shortage of trained staff it has not yet been possible to implement fully the programme of work which the Service has envisaged in connection with soil conservation. There is, nevertheless, much progress to report. Problems of plant and animal ecology are being investigated ; field surveys have been carried out to assist Catchment Boards in classifying land ; farmers have received advice and help in selecting and planting trees for various counter-erosion purposes ; the area of land acquired for protection forests has steadily risen ; and it is hoped that a Forest Extension Service (see Chapter IV) will shortly be functioning. Miscellaneous Forest Uses (1) Grazing.—At the end of the year there were 216 grazing leases in operation, all but a very small number being on a year-to-year basis. A close watch is kept on the effects of grazing, and where it appears that the results may be detrimental, applications are refused. , (2) Mining Privileges.—One hundred and five applications for mining privileges and 5 for coal-mining rights were granted by the Mining Warden over State forest land. These are not granted under the Forests Act, 1921-22, but entail the same obligations regarding the protection of State forests as any of the other privileges. (3) Recreation.—Whilst the Forest Service is entrusted with the control of the State forests for the general good of the Dominion, it would be both unreasonable and unwise to lock up the forests to all but departmental employees and rightholders who actually work in the forests. In addition to their functions of growing useful wood material and conserving water and soil, forests afford wide scope for healthful recreation and relaxation. The educative value to forest visitors is also highly important: they get to know the forests and its trees and birds, and are likely to develop a personal interest in the care of the forests and their protection from harm. Such a feeling of sharing ownership in the forests leads to a diminution in vandalism and in carelessness with fire which will be infinitely more stable and permanent than if left to " officialdom " to inculcate by means of warnings and prosecutions. The development of this multiple use of State forests has received prominence in other countries both old and new, and must be actively and progressively pursued in New Zealand by opening up tracks, providing camping facilities at key points, and so on. State forests are being used increasingly for recreational purposes—mainly shooting, tramping, and climbing—but they can have a very much wider appeal than they do at present if their use for recreation is developed with initiative and imagination.

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(4) Other Privileges. —Other privileges operative at tlie end of the year were: Sawmill-site leases, 15; tramway and road licences, 64; housing-site leases, 5 ; miscellaneous, 5. (5) Water Conservation.—Protection of water catchments by maintaining and extending their vegetative cover —whether this consist of trees or of shrubby plantsis of essential importance for water as well as soil conservation. Forests therefore play a very valuable part in conserving water-supplies and in regulating their rate of flow in connection with hydro-electric, irrigation, and municipal water schemes. A number of State hydro-electric works draw their water-supplies from State forests, while numbers of small private schemes are in the same position. Several town water-supplies come from State forest land, the largest scheme being that of Wellington City—though many such supplies are' from special public reserves vested in the control of the local bodies concerned. The Forest Service has therefore a responsibility to protect such water catchment areas from fire, soil erosion, and plant damage caused by forest pests. (6) Nassella Tussock Control Reserves. —As explained in Chapter VIII under " Legal," the Legislature has determined that where a Nassella Tussock Board or County Council considers it desirable, the Minister of Lands may acquire any tussock-infested land as Crown land subject to the Small Farms Act, 1932-33 (now Land Act, 1948). Furthermore, with the concurrence of the Commissioner of State Forests the Minister of Lands may declare the land or part of it a nassella tussock control reserve. It would appear that this course will be adopted only respecting required land which is so heavily infested that agricultural methods of controlling the weed would be ineffective. Nassella tussock control reserves are to be administered by the Forest Service as if they wereState forests. The Forest Service has accepted no responsibility for the efficacy of tree-planting as a method of control, and it is not anticipated that trees will actually choke out the tussock in many cases. There is some evidence, however, that they will entrap a proportion of its high-flying seed-heads, and in this way prevent the spread of the seed down wind on to uninfested land. It will be obvious that trees with a rapid height development are required, and-that the early planting of tactically-placed strips having regard to topography and prevailing wind direction is advantageous. Unfortunately for the theory that nassella tussock can be controlled or exterminated by tree-planting, the tussock reaches its maximum development in localities which are suited only to inferior tree growth. The administration and intensive management of small scattered areas will constitute a departure from the long-established Forest Service policy of confining intensive forestry to reasonably large areas which are economically capable of carrying the burden of adequate fire protection and general overhead. Nassella tussock control by treeplanting, however, is a special-purpose forestry use of land, and the difficulties involved in the management of small isolated areas, though regrettable, will be unavoidable. At the close of the year the first area selected, 500 acres in extent, had been purchased by the Lands Department and arrangements were in train for the commencement of tree planting in the coming winter. CHAPTER IV—PUBLIC AND PRIVATE FORESTRY General Functions of the Forest Service which fall under the heading of public and private forestry are — (a) To encourage the extension of forests —both private and local body—on to land areas unsuitable for farm use ; and (b) To encourage the protection and management, on proper lines, of existing forests. Protection implies maintaining the forests in a thrifty and hygienic condition by preventing, as far as is humanly possible, all forms of disease or other damage, whether from fire, ir-sects, fungi, or other causes.

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The first function received some prominence in earlier years through the activities of a Forest Extension Officer stationed in each. Island during the period 1921-29 ; while, as regards the second of these functions, a minimum standard of protection and management had been insisted upon by the Timber Controller, both during and subsequent to the war years, in respect of those private forests for which consent to utilization was given. During the year under review, however, the Timber Emergency Regulations were revoked, and, in consequence, the working plans which were approved by the Timber Controller will now continue in force solely at the discretion of the forest owners. In their own interests, however, the forest owners concerned would be well advised to adhere to the provisions of the simple working plans which they were required to prepare. Work under this heading will be chiefly the dissemination of information and advice, but in approved cases assistance may be given by means of monetary advances or loans ; in the latter case, however, legislation may be necessary. The provision of assistance and advice to certain forest owners, with possibly some measure of control, appears to be overdue. Now that the forests are reaching middle age or approaching maturity, it is evident that some are largely in derelict condition due either to understocking or to other forms of neglect; and sound forest protection and management practice should be applied to these potential assets before it is too late. Last year's report referred to a resolution of the Empire Forestry Conference of 1947 urging Empire Governments to take early steps to ensure that private or commercially owned forests and woodlands are managed in accordance with the principles of sound forestry. Unfortunately, at present only a few of the numerous private, local-body, and company forests in this Dominion are under expert forest management. The problem is primarily not so much one of ensuring local timber-supplies, though that is a consideration of very great importance, but rather one of land-use ; of encouraging forest use of odd corners on farms, of waste portions of local-body reserves, and of other lands unsuited to farm use. In this connection, a resolution of the 1947 Empire Forestry Conference stressing the urgent need for a clear-cut land planning policy, and the establishment of a supreme land-use authority, was dealt with in last year's report. Forest Extension (1) Planting.—lndications are that although many landholders express interest in the planting of waste areas, there are comparatively few instances where that expression of interest has been translated into action. Progress appears to be hindered by shortage of labour for planting ; by fear of destruction of planted areas by fire ; by anticipation of onerous taxation on forest produce; or by Actual difficulty in procuring trees for planting. As a result, planting by individual farmers and others is virtually limited to the provision of only the most essential farm shelter, as distinct from both general shelter and woodlots for the production of local timber requirements and logical use of small waste areas. (2) Private Nurseries. —In some, if not most, districts, demand for forest trees exceeds supply, for large-scale planting nurseries appear to raise forest trees of only half a dozen species, normally as a side-line and rarely in any considerable quantities. Few specialize in raising forest trees for sale, but some nurseries, in accordance with sound business practice, do raise large quantities of forest trees under firm forward order. It is confidently anticipated that forest extension work will further increase the demand for planting stock, highlighting the desirability of early consideration being given to the production of certified seed as a means of protecting tree-planters. Farm Forestry Numerous requests for advice, some forwarded through the Department of Agriculture, have been dealt with. Quite frequently the inquirer has asked for trees to be supplied from State nurseries ; but the sale of such trees was discontinued in the year 1929 under an agreement between the Forest Service and the commercial nurserymen.

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There is great scope and urgent need for the extension of tree-planting on farms, with a threefold objective : provision of shelter for stock and farm crops ; protection of the soil against gully, slip, sheet, and wind erosion, and river-bank protection ; and utilization of small waste areas of land for production of timber, and firewood for farm use. Admittedly, these three purposes overlap to some extent: where the object of planting is fairly clear cut, however, advice and, in some cases, other forms of assistance are available from the Department of Agriculture (farm shelter-belts); from the Soil Conservation Council and Catchment Boards (soil-conservation planting), or from the Forest Service (farm woodlots). Planting of coniferous trees where subsidized by the Soil Conservation Council and Catchment Boards is subject to the advice and guidance of local forest officers or the forestry liaison officer attached to the Soil Conservation Council. Company Forestry No new planting by afforestation companies is reported, their principal activity at the present time being either felling and extraction operations or forest maintenance. The term " afforestation companies " means companies which planted forests out of bond or share capital. Of those now exploiting their forests, many dispose of their stands to sawmillers under agreement, the sawmillers carrying out the felling and extraction. In a few instances, however, and including some of the most extensive forests, the companies themselves fell and extract their trees as raw material for their own utilization plants, whether sawmills or pulp-mills. Only one of the afforestation companies is undertaking any thinning ; but, although this thinning has been done on unorthodox lines, it has nevertheless benefited the company by returning an early monetary yield and by enhancing the increment of the final crop trees. There are also several company forests which have been established on a different basis. Here long-established sawmilling or paper-manufacturing companies have planted or are still planting softwood forests to furnish raw material for their main line of business. One such plantation was recently commenced on a tract of sand-dunes under a measure of subsidy from the Soil Conservation Council. The company in question planted a few acres during the year with trees raised in its own nursery ; and a similar concern which in 1948 planted 800 acres is reported to have half a million trees in its nursery for planting out in the winter of 1949. L©cal Bodies According to available information, at least 153 County, City, and Borough Councils and Town Boards control reserves which are at least partly under forest, and, in addition, there are at least 20 local authorities of other designations and 55 semi-public bodies, committees, trusts, &c. Their areas range from a few acres to tens of thousands of acres. At present only one body, the Wellington City and Suburban Water Supply Board, controlling 70,000 acres of State forest vested in the Wellington City Council and other lands, is required to submit forest working plans to the Minister ; and this requirement has been faithfully adhered to since it was instituted by statute in the year 1927. A number of other local authorities in which Crown land has been vested for afforestation purposes are supposed to submit proper working plans to the Minister ; but this practice where it was observed, has fallen into abeyance. Several of the local bodies employ professional foresters to undertake orthodox forest management of the communal'forests concerned. During the past year the planting of 320 acres of new exotic forest by local bodies was reported, while a considerable quantity of material was removed from older forests by sawmillers and firewood-cutters under sales agreements with a number of local bodies.

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It is desired to emphasize, however, that in addition to large areas planted to exotic tree species a very considerable area of indigenous forest is controlled by local bodies for the conservation of municipal water-supplies. The aggregate acreage is not available, but the total indigenous forest area probably exceeds the total area of exotic forest. Government Departments At least 12 Departments other than the Forest Service control forest lands, and with these the Forest Service has always co-operated in giving advice on planting and thinning, the sale of mature timber, and in measuring stands for sale, &c. During the year, the Ministry of Works planted further areas of sand-dunes and portions of Soil Conservation Reserves ; and the Lands and Survey Department and the Department of Maori Affairs undertook planting on land-development schemes for shelter purposes and woodlots. Utilization is now under way on exotic forests controlled by the Departments of Agriculture, Lands and Survey, and Mental Hospitals. Maori-owned Forests There is provision in the Forests Act, 1921-22, for the administration of Maoriowned forest lands, with the consent of the assembled owners, by the Commissioner as if they were State forests. However, no such lands have been declared " Maori forests " under this provision, though it is true that under the Act the consent of the Commissioner has been a prerequisite to any grant by the Maori Land Court or Maori Land Boards of rights to cut timber. However, Maori owners in their own interests would be well advised to consider the question of introducing some measure of proper forest management to their forests, whether by way of applying a well-planned timbersales policy in the case of forest lands which, where cleared, will be suitable for farm settlement, by managing on a long-term basis forested lands that are suited only to forest use (either productive or upland protective forest), or by afforestation of suitable open lands of non-agricultural quality. It is felt that Maori tribes are so organized as to justify from every viewpoint the management of permanent communal forests of the kind which has been so successfully administered for centuries past in various parts of the Old World. Large areas of Maori land would, under managed forest, bring to the owners a steady revenue, and they would provide permanent employment of a type for which the Maoris are eminently fitted. This will become possible, of course, only when the Maori forest owners realize the advantages of a long-term investment yielding steady returns, in contrast to a large, single, monetary return from timber-sales. During the past year, advice has been given by the Forest Service on the silvicultural treatment of a Maori exotic forest established some years ago by the Department of Maori Affairs. Also on behalf of Maori owners twenty-six timber-sale areas were appraised by the Forest Service, involving a total quantity of 57,000,000 board feet of indigenous milling timber, the sale proposals being carefully scrutinized before the Minister was recommended to give his consent. - CHAPTER V -DEVELOPMENT DIVISION: TRAINING AND RESEARCH Inspector in Charge : Mr. T. C. Birch Recruitment (1) Professional Staff. —The Professional Division of the Service has been strengthened by the addition of 8 graduate foresters from overseas. This group consisted of the balance of the successful applicants for positions advertised in 1946, together with the final group of New Zealand ex-servicemen bursars who had completed their forestry training in Britain. Four science graduates of the University of New Zealand also joined the Service.

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The total number of professional officers in tlie Forest Service now stands at 66, of whom 33 hold University degrees in forestry. The balance are science graduates preparing for higher forestry education, qualified engineers, or specialists in other fields. (2) Clerical Staff. —The lack of clerical cadets offering during recent years has created a serious shortage in the junior ranks, and a concentrated effort was made during the year to recruit suitable young men from the rural areas. Recruitment from all sources resulted in the appointment of 26 cadets to the Service. Details of all staff appointments during the year are given in Chapter IX. (3) Field Staff. —The usual recruitment of technical trainees was this year preceded by advertisement in rural newspapers and by radio. The number of applicants was not as great as usual; but their quality, as evidenced by higher educational qualifications, was better, and enabled, the Selection Committee to raise the standard. Twenty-one applicants were finally accepted, a small percentage of these being ex-servicemen. It is expected that next year will bring very few applications from this group, so that the emphasis from now on will be on the recruitment of youths who have a good rural background plus satisfactory educational qualifications. A special recruiting drive to engage workmen suitable for training as skilled forest workmen and leading hands was undertaken during the spring months, and trainingcamps were established in all coßservajqcies. The response was disappointing, and the quality of the labour offering generally below the required standard. However, likely recruits still coming forward are selected for training, and if, after a period, they prove suitable for advancement, they will be nominated for courses at the training centre. Labour recruitment for exotic forests in recent years clearly indicates that more married accommodation is necessary to attract the more stable and mature type of workman. There is no doubt that, were houses available, many excellent workers would gladly move their families to the country districts, where living-costs are lower. Forestry Education The Forest Service has persevered during the year in its endeavours to secure the establishment of a professional School of Forestry within New Zealand, and in doing so has not deviated from the firm conviction that such an institution is justified only if it provides the highest standard of professional training. Nevertheless, whatever be the outcome concerning a School of Forestry in New Zealand, the Forest Service cannot afford to neglect the training of suitable men for its future professional staff. Hence the continuation of facilities for selected technical trainees to attend the University and graduate B.Sc. as a preliminary to higher forestry education. During the year 1 graduate commenced the study of forestry at the Imperial Forestry Institute, Oxford, and 3 at the Australian Forestry School at Canberra. * A further 11 trainees completed their B.Sc. course in New Zealand during the year. The presence of Dr. H. H. Chapman (Emeritus Professor, Yale University, United States of America) in New Zealand during the year was a good opportunity for this Service to seek the views of a recognized world authority on forestry education. It was learnt that Dr. Chapman not only approves of the principle of a science degree prerequisite to a forestry course, but also suggests specifically that the University of New Zealand should provide a four-year basic science course, followed by a two-year Master's degree course in forestry—-not in a University centre, but " at the most serviceable centre of forestry activity." This independent expression of opinion is of the utmost significance, in that it advocates an even higher standard of forestry education than that sought by the Forest Service since 1946. The Forest Service adheres to the conviction that Rotorua is the only logical centre for a national Forestry School not only because of the advantage of association with the Research Institute there, but also because of Rotorua's geographical position as the focal point of the Dominion's major forestry activities.

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Departmental Training (1) Field Training.—Some 52 technical trainees were receiving field training, advantage being taken of the wide range of conditions and operations on forests throughout the Dominion to give them varied rotational experience. The number of new recruits was offset by a similar number of senior trainees being promoted to forest rangers and by others commencing University study towards professional training. Junior forest workmen also were given training in the branches to which they belong; and courses for junior labourers, leading hands, and timber measurers were held during the year at the Rotorua Training Centre." (2) Clerical Training.—With the extension of activities within the Service, there has been a greater demand for clerical servicing not only on the main offices, but also at forest stations where no clerical assistance has been given previously. Recruitment alone is not the solution to the additional clerical work involved ; training means increased efficiency, consequently more attention has been given to the training of existing staff. The need for more organized training was recognized during the year by the appointment of a Clerical Staff Training Officer ; and full advantage is now being taken of the facilities at the Rotorua Training Centre for short courses of instruction. Staff lectures, conferences, and job rotation were continued. ' (3) Rotorua Training Centre.—Twelve courses were held at the Rotorua Training Centre, compared with seven in the preceding year (see Appendix X); consequently it was sometimes necessary to conduct two courses simultaneously, taxing the limited space available. At the present rate of progress (approximately one a month) with short courses —technical, clerical, and vocational —the type of instruction to serve present needs should be sufficiently disseminated throughout the Service by 1950 to warrant some slowing down. Thereafter a long-term training policy, looking to the future rather than to immediate needs, can be developed. The trend of instruction has been to cut lecture-room work to a minimum and incorporate an adequate amount of field-work for demonstration purposes, theory having proved satisfactory only when adequately combined with practice. The total personnel passing through the Training Centre during the year was 201, including those engaged on tool-maintenance courses. As courses have become more standardized, the number of instructing personnel has been reduced, and there have been fewer calls upon staff outside the Training Centre. The quality of the technical trainee group has been well up to standard, mentally and physically. Twenty-two recruits passed through the trainee preliminary course. The course for senior trainees revealed that, although their standard was satisfactory, more field training is required if they are to cope with the problems confronting presentday field officers. An interesting departure this year was the secondment of 2 junior officers of the Fiji Forest Department for six months' training in the New Zealand Forest Service. The Tapanui Forest Vocational School, which was established as a post-war measure to train ex-servicemen and leading hands, has fulfilled its purpose and was closed during the year. The number of men requiring this type of training is now small enough to be -.handled entirely by the Rotorua Training Centre. There were two courses at Tapanui during the year : one for junior labourers and one for leading hands. Forest Research Institute (1) General. —Satisfactory progress was made in the development of the Forest Research Institute (previously known as the Forest Experiment Station) during the year, and certain projects, particularly those connected with volume and yield tables, have already produced results of value. The preparation of a programme of both routine and special investigations for the next three years is now envisaged.

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(2) Staff.—The staff of the Institute was increased by transfers and new recruitments ; posts of Silviculturist, Assistant Mycologist, Soil Biologist, Biometrician, and Botanical Assistant were filled. Apart from its own programme of research work, the Institute has provided specialist staff for lecturing duties, as required, at the adjoining Training Centre. The programme of work which can be efficiently undertaken by a research organization is, of course, directly limited by the numerical strength and research experience of its staff. As the Forest Research Institute is at present operating with only a nucleus staff (not more than 5 officers in a total of 16 have the experience to enable them to undertake major research), the response to an advertisement throughout the British Commonwealth for foresters experienced in research is keenly awaited. (3) Records and Library —A. permanent record system for the collection of technical information is in course of preparation, the basis being the decimal system of classification for forest literature as used in the Forestry Abstracts. The Institute has been allotted the task of abstracting certain New Zealand publications for the Commonwealth Forestry Bureau. Preparation of a punched-card index system for records of sample trees has been commenced. Additions to the library during the year amounted to about 1,700 books and pamphlets. Compilation of the index is now complete, and it is intended to issue a catalogue shortly, and supplements at quarterly intervals thereafter. A photographic library has been commenced. (4) Publications. —Material for the first issue of Forest Research Notes was collected and edited. This series is intended to give relatively short accounts of completed projects, and interim results of more ambitious investigations. The following papers were read to the Seventh Pacific Science Congress by members of the Institute staff: — " Shifting Cultivation and Its Effects in Burma," by F. Allsop. " Recent Observations on the Sir ex noctilio Population in Pinus radiata Forests in New Zealand," by G. B. Rawlings. " Ecological Investigations in the Nothofagus Forests of New Zealand," by J. T. Hollo way. SILVICULTURAL AND BOTANICAL RESEARCH (1) jHerbarium.—The herbarium at the Forest Research Institute was augmented during the year and now contains specimens of 420 indigenous and 240 exotic species. The dried specimens have been supplemented by a collection of fruit and flowers preserved in Hessler's solution. (2) Arboreta.—The identification and labelling of trees in the exotic arboretum has been completed. The important additions during the year include Pinus echinata, Pinus strobus, Ostrya virginana, Cupressus macrocarpa, and the hybrid Cupressus macrocarpa x Chamaecyparis lawsoniana. Improvement of the indigenous arboretum was delayed by drainage work ; but sixteen species were planted out. Seedling stock of both exotic and indigenous species has been raised for further plantings in the arboreta, and for amenity plantings elsewhere. A further 1,350 trees, including exotic species of AgMhis, were planted in the Northern Arboretum at Waipoua Forest, and some failures of earlier years were replaced. (3) Tree Seed Studies. —Collection of information on the occurrence of seed crops of exotic and indigenous forest trees was continued, also studies of germination periods and cotyledon and seedling characteristics. Routine viability tests of seed were carried out. Observations on growth of native and introduced trees were collected and correlated. Special attention was given to reports on the growth cycles of exotic conifers, and a summary of the information collected to date is being prepared for publication.

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(4) Tree Genetics. —The initial steps have been taken in the study of tree types in Pinus radiata, Douglas fir, and Corsican pine ; and a little experimental grafting of these species has been done so that progress in the technique of collecting cuttings and grafting will keep pace with investigation of types. If successful, the grafting method will give quicker results than cuttings in the creation of stands of good-type trees from which high-grade seed can be collected. (5) Vegetative Propagation.—The experiments on vegetative propagation of Pinus ■radiata described in the last report as giving almost entirely negative results were repeated on a larger scale under more suitable conditions ; this time with appreciable .success. The principal planting was in June, 1948, using 400 cuttings of each of several types of shoot, 200 being heeled cuttings —i.e., torn off the tree with a fragment of the parent stem —and 200 unheeled cuttings—i.e., removed from the tree by a clean cut. Half of each were treated with a hormone preparation and half used untreated. These units of 100 cuttings were broken into sets of 25 and planted in random blocks in the nursery beds. Repetition is necessary before definite conclusions can be drawn, but interim results can be summarized as follows (a) Survival percentage was about the same (60-70 per cent.) for all six types of cuttings used—viz., cut tops of one-year-old seedlings ; first order laterals from two-year-old trees ; first order laterals from five-year-old trees ; second order laterals from five-year-old trees ; and second order laterals from seven-year-old trees. (Ib) There was no significant difference between results from heeled and unheeled cuttings. (c) Vagaries in weather immediately after planting had a marked effect, but if the weather was favourable, August plantings were as successful as those in June. (d) Owing to difficulties in the supply of hormone preparations this aspect of the investigation was not handled as systematically as could be desired, hence repetition is necessary. (6) Sample Plots.—By courtesy of New Zealand Forest Products, Ltd., and Afforestation Proprietary, Ltd., permission was obtained to establish sample plots in the dense natural regeneration of Pinus radiata and Pinus pinaster which followed the ■extensive fires of 1946. A set of plots is also planned in a seven-year-old crop of similar origin. Methods of treatment, which of necessity must be exploratory, will be considered next year. Permanent sample plots were established in natural regeneration of Pinus radiata, .aged five to seven years, to study the effect of pruning and thinning at various seasons. There is evidence that if such operations take place between December and March when Birex noctilio is plentiful the incidence of attack by this insect is so heavy that undue -casualties occur among trees it is intended to retain. (7) Soil Deficiency.—Abnormal mortality in young plantations of Pinus radiata in Rotoehu Forest, Rotorua Conservancy, gave cause for concern. In stands planted initially at 6 ft. by 6 ft. spacing, survivals per acre were :

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Age. Living Trees. Dying Trees. 4 . 842 12 6 740 8 490 100 11 283 1 124

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Casualties at this rate being encountered only in Rotoeliu Forest, the possibility" of deficiencies in the soil were envisaged ; and trials were begun to study the effect of applying boron, potassium, and other elements. (8) Thinning.—Studies of the response to thinning of Douglas fir, Pinus murrayana, Pinus laricio, Pinus spatula, Pinus ponderosa, Pinus radiata, Pinus strobus, and Pinus taeda were initiated in permanent sample plots. The plots in Pinus radiata will also be used to investigate the effect of thinning —and possibly underplantin g in podzolization of the soil under this species. The year's work in the establishment of permanent sample plots was largely centred in Rotorua Conservancy, where eleven new plots were laid out and measured, and most of them thinned. Four old plots were remeasured, and two of them thinned. One old Corsican-pine plot had to be abandoned owing to serious damage by wind. A set of new plots was established in Karioi Forest, Wellington Conservancy. Review of old plots in Southland and part of Canterbury Conservancies was begun, and tentative sites were selecte'd for new plots. (9) Under planting. —The results of planting exotic conifers in indigenous forest after logging operations were studied. The field-work is nearing completion, and when complete an attempt will be made to assess the success of the policy. (10) Beech Regeneration.—Regeneration experiments were continued in red and silver beech in virgin and logged parts of Rangataua Forest, Wellington Conservancy. For the past five years a negligible amount of seed has been produced in this forest, but there is evidence of a good crop in 1949. Forest Management Research (1) Yield Tables. —Based on data collected from temporary sample plots in the exotic forests of Rotorua Conservancy, empirical yield tables were prepared for unthinned stands of Pinus radiata, Pinus laricio, and Pseudotsuga taxifolia. Plots were also established in Pinus ponderosa and Larix decidua stands, but the results have not yet been analysed. During the course of this investigation data were collected to study the development of heartwood in these species, the purpose being to determine the yield of timber suitable for the manufacture of groundwood pulp. This work is discussed further under " Forest Products Research." Studies of the relationship between the usable volumes of timber in malformed and normal trees were also carried out. In the course of routine work on the establishment of permanent sample plots further data were collected for the preparation of normal yield tables for the principal exotic species. For convenience, the initial programme of permanent sample plots has been centred on Rotorua Conservancy. However, a manual of instructions has now been issued, and this will facilitate the extension of this type of work to other conservancies. The first new plots in Auckland and Wellington Conservancies have already been established. (2) Volume Tables. —The year has seen great progress in the production and testing of volume tables. New tables have been prepared for Douglas fir and Corsican pine in Rotorua Conservancy, and for insignis pine in Southland Conservancy. A revised volume table for insignis pine in Rotorua Conservancy was also compiled. Progress was made in the preparation of volume tables for kauri, ponderosa pine, and European larch. Revision of the volume tables for rimu was begun. (3) Assessment. —Assessment methods in exotic forests received attention. Experimental work has indicated the superiority of the line plot method over the strip plots used hitherto. However, the computations are possibly more complex than can be handled by the staff available, and it may be necessary to prescribe the intensity of sampling instead of basing it on statistical examinations of results of a preliminary

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trial in each particular case. An attempt to prepare a scale of stocking classes for Pinus radiata from aerial photographs was only partially successful, the indications being that if site-quality were taken into account such a scale could be developed. These investigations will continue as time and staff permit. Forest Pathology Research (1) Entomology.—rThe local epidemic of Sirex noctilio which has been developing in Rotorua Conservancy over the last three years has continued. Investigation of dying Pinus radiata has shown that death is directly attributable to mass attack by Sirex, and that the killing is caused by the action of the associated fungus upon the rays and water-conducting elements of the wood. It is significant that an insect, normally regarded as purely secondary, should be capable of becoming of primary importance. The epidemic' is probably associated with an unusual series of hot dry summers, coupled with the existence of ideal breeding-sites in the form of trees left after felling operations. It is probable that if more aggressive insects, such as bark beetles, were to be introduced, the trees would be killed before they became susceptible to Sirex, which would then revert to its position of secondary importance. The fact that Sirex has been able to develop to this extent is in itself an indication of an unhealthy condition within the stands, and of the heavy mortality which may be expected should a dangerous species be introduced. Following the investigation of Pinus radiata in which the effects of climate, soil, aspect, insects, and fungi were studied, Sirex noctilio was selected as a specific subject, for research. While it will be several years before proof of many of the more obscure points is obtained, it has become clear that Sirex is the vector for a fungus which is capable of killing Pinus radiata and other pines. The predisposing conditions for successful attack are now under investigation. . The study was made with particular reference to Pinus radiata in the Rotorua Conservancy; but general information was collected regarding dates of emergence and oviposition throughout New Zealand for both Sirex and its parasite, Rhyssa persuasoria. Information was also obtained regarding Sirex attack on other species of pine. Rhyssa has been bred out from material collected in Whakarewarewa Forest and liberated in new localities. Breeding experiments were initiated to study the life-history of Navomorpha lineatum, which attacks branches of Douglas fir. The study was complicated by the presence of a second species,. N. sulcatum, which apparently attacks branches killed by the first species. Routine work in entomology included the following : (a) Collection and identification of forest insects. (b) Life-history studies, breeding under controlled and uncontrolled conditions. {c) Compilation of data from returns submitted by outside observers. (d) Advice to field staff, and identification of specimens sent in. (2) Mycology.-—Special attention was given to the identification, distribution, and importance of fungi-forming mycorrhizee with forest trees, particularly with exotic species. Fungi attacking Sirex, Rhyssa, scale insects, and cicadas were studied, and the following routine projects were dealt with : (a) Collection, preservation, and identification of forest fungi. (b) Maintenance of stock cultures of forest fungi. (c) Toxicity tests for wood-preservatives. (d) Advice to field staff, and identification of specimens sent in. Other investigations included the causes of mortality in Pinus radiata regeneration following fire ; the deterioration of timber in fire-damaged indigenous trees ; Cyttaria disease, Nothofagus menziesii; Platypus attack in beech and tawa; Lyctus attack on tawa timber ; Charagia damage to beech poles ; insects and fungi in forest nurseries ; heart-rot fungi and sapstain in sawn timber.

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National Forest Survey Forest survey work was continued at approximately the same rate as in the previousyear. The total area* now covered exceeds 1,600,000 acres, approximately 500,000 acresbeing covered during the year. Of this area, 75 per cent, represents merchantable forest. Further details are given in Appendix XI. In the North Island, millable podocarp stands north-west of Lake Taupo and areas due south of Opotiki are the most important units untouched, and these will be accorded priority for future work. In the South Island, 50 per cent, of the milling timber areas south of Hokitika have been covered on the ground, but the areas north of Hokitika are still untouched. Western Nelson, particularly the region north of Westport, is likely to be difficult area, as it is largely unknown. South Westland and the outstanding' milling timber areas of the North Island will be the programme for the summer, 1949-50. In Southland the podocarp forests west of the Waiau River have been completed as far as field-work is concerned ; and other areas of beech forest, where information wasrequired for working plans, have likewise been investigated. Coromandel has been completed in the field as far south as Thames. This unit is concerned less with milling stands than with the regeneration of the kauri forests once so abundant in that locality. Milling timber of any extent is practically non-existent on the Coromandel Peninsula. Computation of the stand per acre has been completed for all areas except Westland, and complete volumes have been compiled for an area of 88,000 acres. Completion of final type maps has fallen far behind field-work owing to shortage of draughting staff, both in the Forest Service and the Aerial Mapping Branch of the Department of Lands and Survey. To date only five of these maps have been completed, and a further five are in the hands of the Aerial Mapping Branch. In the coming year there will be a considerable increase in the number of aerial photographs ready for plotting. However, with the demands made on draughting staff by exotic-forest activities T it is doubtful whether any great increase in the output of type maps will be possible.. Until these maps ar,e completed, no reliable timber estimates are possible. The aerial photograph library was increased during the year by 2,305 to 8,934. It is important to build up adequate cover of the forested area so that photographs areavailable for use by the field staff of the project. Forest Products Research (1) General. —In anticipation of the transfer of research work to the Forest Research Institute at Rotorua, the necessary laboratory facilities have been planned and are now approaching completion ; however, immediate cessation of all investigational work in Wellington is not practicable. In any case, it will be necessary to maintain liaison with other research bodies, Government Departments, and trade organizations in Wellington, also to continue the technical advisory service in that centre. A short course on wood technology was again given by a Forest Service officer at the Wellington Technical College. It is of interest to note that a more ambitious course is now in progress at the Seddon Memorial Technical College. Standards Institute Committees continue to occupy a considerable amount of officers' time. The more important matters under consideration during the year were grading of in sign is pine, kiln drying practice, New South Wales hardwoods, wood preservation and glues. (2) Grading of Timber. —The timber requirements of the building industry in New Zealand are in need of very critical analysis in the light of the changing situation as regards availability of both species and grades. In particular there must be a much greater economy in the use of the clear grades of indigenous timbers. In the immediate future the exotic species, particularly insignis pine, can make their greatest contribution in the form of framing grades. As regards finishing grades, it is inevitable that some

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defects, such as intergrown knots, should be admitted ; hence it would be at least logical to relax the specifications governing the use of indigenous timbers for similar finishing purposes. All rimu and matai suitable for machining into flooring and weatherboarding should be rigidly excluded from the building grades in order to offset as far as possible the deficiency in dressing grades. There is, of course, no suggestion that all Building A rimu is suitable for finishing lines, but a considerable proportion undoubtedly is ; and suitable relaxation as regards defects admissible in the machined products will achieve the desired objective. During the past year the grades of insignis pine intended for machining were published as Amendment No. 3 to the National Grading Rules (New Zealand Standard Specification 169). Specifications for the machined products will also be issued by the Standards Institute in the near future. In Amendment No. 3, two grades, " Finishing Grade " for machining into interior finish woodwork, and " Dressing Grade " for machining into flooring and weatherboarding up to and including 6 in. wide, and other dressing lines, were provided for. The percentage of sawn output which measures up to these grades is very small and consequently can make only a relatively small contribution to building needs. A technical officer attending a conference in the United States visited a number of large sash, door, and millwork plants where the principal timber used is western yellow pine (P. ponderosa) in Shop and Factory grades. It has previously been pointed out that this timber has many basic properties similar to those of P. radiata grown in New Zealand. The Nos. 1, 2, and 3 Shop grades of P. ponderosa are required by definition to yield stated percentages of Door " cuttings," including the whole range of small sizes, but with particular emphasis upon a minimum yield of the 6 ft. 8 in. or longer door stiles and the wide bottom rails. It is not inferred that P. radiata as grown in New Zealand will yield grades directly comparable with these Shop grades from virgin growth P. ponderosa, but a similar approach to the formulation of " cuttings " grades for the more important factory uses in New Zealand is logical. Current work on grading of insignis pine is concerned with the development of grades for export, factory grades, and structural grades. A comprehensive study of inter-nodal lengths- —i.e., distance between whorls of knots —in insignis pine logs has provided useful information as a basis for grading and the utilization of short lengths. (3) Timber Mechanics.-—One of the few important indigenous timbers which had not been included in the strength test series is mountain beech (Nothofagus cliffortioides). Recent botanical studies in western Southland, however, have shown this species to be of considerable potential significance and material for strength tests was obtained from five trees representative of the excellent type of mountain beech growing in that region. The tests of green material have not yet been completed, but preliminary results show that the density to strength relationship is very good. Tentative results for all the bolts from one tree show the following :

In density the timber is intermediate between Southland silver beech and red beech. On the basis of toughness tests and figures for " work in bending to total load," the wood is very tough. Air-dry material from C and D bolts of five Pinus radiata trees from Rotorua previously tested was tested after six years in dry storage. Slight changes to some strength properties have been recorded. 2—C 3

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Static Bending. Mountain Beech. Bed Beech. Silver Beech (Southland). Modulus of rupture (pounds per square inch) 8,600 9,070 7,570 Modulus of elasticity (pounds per square inch) 1,300,000 1,720,000 1,280,000 Toughness (inch-pounds) 172 (Tests incomplete)

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The most interesting results from toughness tests were obtained from a batch of white-manuka specimens which gave an average toughness value of 245 in.-lb. for air-dry material with a density of 59 lb. per cubic foot. This timber is not equal to hickory for the highest-duty handles but it appears to be superior to spotted gum and American and European ash in toughness. A conference of representatives of British Commonwealth countries actively conducting strength tests was proposed at the 1947 Empire Forestry Conference for the purpose of standardizing testing procedure. This- Conference was convened at Ottawa during September-October, 1948, and was attended by the Engineer in Forest Products. In addition to British delegates, there were representatives from the United States Forest Products Laboratory at Madison, Wisconsin, where the second half of the Conference was held. With the transfer of forest products research to Rotorua in the near future it will be necessary to purchase equipment for standard and structural A.S.T.M. tests for accelerated work on exotic species from the various districts in which these forests are approaching maturity. In the meantime the arrangement by which the Forest Service is able to use the testing machines at the technical college and Works Department in Wellington will be continued, the co-operation of these institutions being greatly appreciated. (4) Wood Technology.—Routine microscopic identifications of 21 specimens were undertaken during the year. In addition, the microscopic investigation of New Zealand woods by major botanical family groups was commenced. Thirty proven samples were supplied for microscopic sectioning, and some 150 permanent microscopic slides were added to the reference collection. An extensive survey of specific gravity and shrinkage variation in the New Zealand beeches has been initiated, over 40 specimens having been collected from forest areas ranging from Mamaku Plateau in the North to- western Southland. Interim conclusions are : (a) In general, North Island silver beech is of high density, as indicated originally by the Mamaku strength test trees. (b) Silver-beech samples from parts of the Nelson Conservancy suggest that resources of the light-weight versatile timber may not be limited to Southland. (c) Red beech, represented by the greatest range of material, shows a tendency to decrease in density from North to South. North Taranaki samples (with basic specific gravity 0-64) were exceeded only by one fast-grown sample from near Wellington, while the minimum values, 0*45, were recorded from Westland (the latter being the same as the average figure for Southland silver beech.) (d) Samples from two other species (hard and black beech) gave general confirmation to the figures established from the strength-test material. (e) Samples from small mountain-beech trees from montane forests gave specificgravity figures lower than those established for the low-altitude large trees of western Southland. (f) Additional strength-test data should be established for red beech from important South Island forests. A comprehensive study of the density of non-heart rimu was made, using samples of weatherboarding, flooring, and matchlining. There is no appreciable difference in the mean densities for North Island, Westland, and Southland material, but the North Island samples showed the greatest variation. It must be noted, however, that the South Island material came from two reasonably homogeneous localities, while the North Island material was from rather widely dispersed areas. The mean density at 17-| per cent, moisture content was 33-9 lb. per cubic foot.

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As an integral part of the current study of mountain-beech timber from western Southland, tests are being made of shrinkage and specific gravity on material from the five strength-test trees and an additional five trees to indicate variation with site. The basic specific gravity for C. and D. bolts of the five test trees is 0-514, this figure being in fairly close agreement with the average basic specific gravity of 0-498 obtained from butt and merchantable top sections of six trees. Yery high shrinkages occurring in some test material were indicative of the refractory nature of heartwood, which tends to f collapse " in seasoning. In conjunction with the study of resin content in trees from insignis-pine compartments in Kaingaroa forest, a study of the wood itself was also undertaken. Most of the material came from one compartment of twenty-three-year-old trees. The mean basic specific gravity for thirty-six trees from this compartment was 0-373 ; individual means for the several crown classes were : dominant, 0-367 ; co-dominant, 0-363 ; intermediate, 0-383 ; suppressed, 0-386. It has been shown that the presence of low-density core wood in insignis pine is not necessarily indicative of high longitudinal shrinkage. This latter feature is noted especially in butt logs in dominant and co-dominant trees, whereas low-density corewood occurs at all heights in these crown classes, being disguised by infiltrates at the butt. The light corewood is found only in. top logs in intermediate and suppressed trees. Trees of Pinus patula were also studied in connection with resin-content work. The average basic specific gravity for four thirty-seven-year-old trees from Whakarewarewa was 0-386 (co-dominants, 0-402 ; suppressed, 0-370) ; material from three sixteen-year-old trees from Kaingaroa contained no heartwood and had a mean specific gravity of 0-336. Studies of heartwood content of several species were made in conjunction with volume-table work at Rotorua. Douglas fir and insignis pine are notable for their early development of heartwood, while Corsican pine and ponderosa pine in forty-year-old stands carry a very small proportion of heartwood. Interim results are reported from chemical posioning experiments designed to retain the easy barking characteristics of spring and early summer fellings by killing the trees during these seasons. Sodium arsenite as a flour paste was applied after ring-barking. European larch trees felled four months after treatment were barked more easily than the controls. Experience was less favourable with Corsican pine, as parts of many trees remained green, and the killed parts were affected by sapstain and insect attack. In another study concerned with living trees, the practicability of sapwood penetration with chemicals is being investigated with the object of rendering tawa sapwood immune from Lyctus attack during and after seasoning. (5) Drying of Timber.—lt has been necessary to emphasize to users and producers of insignis pine timber that extreme care must be used in seasoning this timber and in storage after drying. The need for anti-sapstain dipping has been recognized in the export trade ; and the Forest Service suggestion that local users should insist upon freedom from excessive sapstain in timbers for building has resulted in greater attention to this problem. A cyclostyled note, " Prevention of Sapstain," has been widely distributed, and it will be available shortly as a printed information leaflet. There is also a need for an information leaflet on all aspects of seasoning and after-care required -with insignis pine for building purposes, and a suitable leaflet has already been completed for publication. In the field of kiln drying, assistance has been given to kiln operators in the provision of schedules, m kiln testing, and in the training of operators. A small laboratory kiln to dry lengths up to 6 ft. has been completed, and initial tests are in progress at Waipa. This kiln will be used for the development of kiln schedules for the more troublesome indigenous and exotic timbers. The accelerated drying of tawa blocks for subsequent turning into shoe-lasts was the subject of a small-scale study. Tawa logs were cut into last blank lengths, split " along the quarter " into sectors, and kiln-dried. Even using chemicals to minimize

2*

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checking during seasoning, it is obvious that kiln drying down to the final required moisture content of between 12 per cent, and 15 per cent, is not the best method. From experience gained in this study and information obtained overseas, it is preferable to kiln dry the sectors only to about 30 per cent, moisture content; they should then be rough-turned and stored for slow final seasoning in a conditioned room. Numerous attempts have been made, in the past to accelerate the drying of timber to a degree far in excess of that achieved by normal kiln drying, and two processes developed in the United States of America have potential value to New Zealand. The solvent-seasoning process developed by the Western Pine Association has not yet been brought into regular commercial operation, but the vapour-drying process developed by the Taylor-Colquitt Co. is already in regular operation as a method for pre-seasoning railway sleepers and large-dimension structural timbers before treatment with creosote or other preservatives, and that has been its most important application so far. A technical officer of the Forest Service who visited the Taylor-Colquitt plant last October has reported very favourably upon the process as applied to large-dimension stock, and has also indicated that its application to the drying of sawn timber is worthy of close investigation. However, it has not yet been proved to be commercially practicable. Tentative equilibrium moisture-content figures for various indigenous and exotic timbers have now been developed for most parts of New Zealand. This was based on a study of equilibrium mositure contents in Wellington over a period of two years, with the assistance of the comprehensive range of meteorological data now available for New Zealand. (6) Wood Preservation. —Service test lines of creosoted rimu poles which had been installed in co-operation with the Post and Telegraph Department were examined critically during the year. Whereas unpreserved controls had failed after two to four years' service, all preserved-poles with the exception of two were found to be perfectly sound after eighteen years' service. These poles were treated by the open-tank process, and because of the limited control over absorptions and penetrations it was thought at the time of treatment that a life in excess of twenty years would not be obtained by this method of treatment. The present condition of the preserved poles indicates that an average life in excess of thirty years may be anticipated ; and a report covering the treatment details and service performance of these creosoted rimu poles has been prepared for publication. The performance of creosoted larch poles under service conditions is being studied in co-operation with the Post and Telegraph Department in four test lines in the North Island and one in the South Island. For rural reticulation, creosoted larch (Larix decidua) poles are extensively used by the Post and Telegraph Department, and also by some Power Boards. Larch poles are known to check severely during seasoning prior to preservation, and the possibility of these checks progressing during the service life of the pole and extending beyond the depth of creosote penetration was a matter for concern. Poles that have been in service for ten years were examined, and the results of this inspection were gratifying, as no evidence of decay was apparent. It would appear, therefore, that no extensive exposure of untreated wood occurs after preservative treatment. Severely-checked poles that have been in service for ten years were removed from some lines so that they may be dissected to investigate the depth of checking in relation to the depth of creosote penetration. Creosoted larch cross-arms have been used by the Post and Telegraph Department, and the service performance of these units has also been placed under observation. In co-operation with the Railways Department, the testing of creosoted insignis pine sleepers has been undertaken. Service testing of creosoted fence-posts in New Zealand dates back to 1922, when the first test lines were erected by the Forest Service. Additional lines were erected during the period 1922 to 1927. Pines, beeches, larch, and eucalypts were included in these tests, and were given various hot and cold bath butt and full-length treatments.

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The average untreated life of these species varied from two to six years. Those posts which had received ( full-length treatments, resulting in satisfactory absorptions and penetrations, were found to be serviceable after an exposure period of twenty-six years. A detailed report on these tests has been prepared for publication, while the results of these tests have also been included in publications dealing with recommended practice for the preservation of fence-posts and farm timbers. The experimental pressure impregnation plant 26 in. diameter by 8 ft. long was brought into operation at Rotorua during the year, and treatment schedules for the pressure impregnation of larch poles and posts were investigated. Pressure impregnation studies will be extended to cover all species of commercial significance, and will be of value in grouping the commercial timbers of New Zealand into permeability classes. Testing of wood-preservatives against marine-borer infestation was continued with the co-operation of the Auckland Harbour Board, and these tests have now progressed to a stage where some conclusions may be drawn from the results of the six years' exposure. These tests will be extended, using the facilities now available for treating timber under pressure. Unfavourable conditions for air-drying large-dimension pine stock are frequently •encountered in New Zealand, and where such conditions do exist it is impossible to airdry pine poles without appreciable degrade due to decay. Means of overcoming this problem are now under investigation ; it is thought that a light preservative treatment prior to seasoning will prove to be effective. The wood-preservation section dealt with many requests for assistance or technical ■advice from industry, the public, and from Government Departments. Information leaflets on methods of sapstain prevention and on the preparation and use of toxic ■chemicals in organic solvents for the preservation of timber were frequently in demand. (7) Painting of Timber. —The general conclusions previously reached regarding the usefulness of white-lead paints for application to insignis pine have been modified to a very minor degree by further experience. Current tests suggest that a bodied oil vehicle may be preferable to raw oil in the white-lead priming coat. It is of interest to note that the Western Pine Association of United States of America recommends white-lead pigment in all coats applied to Pinus ponderosa. Tests are not yet far enough advanced to indicate the effectiveness of the Western Pine knot-sealer applied under the priming coat, but on the basis of overseas experience it is recommended in preference to shellac knotting. This sealer is now available from a local paint-manufacturer. Inspections of houses in course of erection have again drawn attention to the undesirable practice of allowing the priming coat on weatherboards to weather for periods of six to twelve months before an undercoat is applied. Insignis pine will not withstand this abuse. When the priming coat no longer provides protection to the timber, the boards cup and also check very badly (due to restraint to their swelling when the moisture content rises, and the consequent " compression shrinkage "). The cupping •opens up gaps at the laps, and the checks cannot be adequately covered by subsequent painting. Hence with insignis pine the need for correct painting practice is even more •essential than with heart timber of the indigenous species. The additional protection ■afforded by back-priming the weatherboards, provided that they are at the correct moisture content (between 15 per cent, and 18 per cent.) when primed, is advocated as good practice. The undercoat and finishing coat should be applied not longer than four weeks after priming. Useful information will be obtained from the paint fence tests sponsored by the Inter-departmental Paint Committee, on which Forest Service officers are serving. The major part of the testing work is undertaken by the Dominion Laboratory, and the technical data published in the Paint Review and in mimeographed bulletins is filling a long-felt want. (8) Wood Chemistry. —The most important work in progress is the study of the resin content of the more important exotic Pinus species from the viewpoint of their pulping properties. Heartwood content is a significant factor in much of the P. radiata

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twenty years old or more in the Kaingaroa Forest. Material selected from the several crown classes, and cut at the butt, 4 in. top, and intermediate heights, was divided into sapwood, heartwood, and intermediate zones for detailed examination. Ether-soluble content determinations were made by the Dominion Laboratory on several hundred samples ; and the Laboratory is also making a more minute examination of larger quantities of resin extracted from a log of P. radiata to determine the chemical and physical properties of the resin constituents. Some conclusions drawn from the ethersoluble determinations are : (a) Resin content in suppressed trees is higher than in other crown classes —e.g.,. in the bolts taken from material 6 in. diameter down to 4 in. diameter the content in suppressed trees is I*4 per cent., as compared with 0-9 per cent, in dominants and co-dominants. This is largely accounted for by the heartwood contents : At 4 in. diameter : Suppressed, 8 per cent.; other classes, 0 per cent. At 6 in. diameter : Suppressed, 13 per cent. ; other classes, less than 1 per cent. At 8 in. diameter : Suppressed, 10 per cent.; dominants, 1-6 per cent. (b) Seasonal-variation figures for butt sections show highest resin contents in the spring, for 10 in. and 7 in. diameters highest in autumn to winter, for 6 in. and 4 in. diameters slightly higher in spring than in autumn. (c) Mean annual resin content for all crown classes, 1-6 per cent., which is also the seasonal mean. Exploratory tests of resin content using solvents other than ether are in progresson P. radiata samples. This Service has made a few ether-soluble determinations on P. patula, whose low resin content is of interest—o*6 per cent, in thirty-seven-year-old trees from Whakarewarewa, but 1-7 per cent, in sixteen-year-old Kaingaroa trees. Tests of silica content in mountain beech confirm previously published data. The timber from western Southland has a silica-in-ash content varying from 12 per cent, to 80 per cent. At the top of the merchantable bole the content is higher than at the butt; sapwood also has a higher content than hardwood. An investigation of the substances in the heartwood of a wide range of durableconiferous timbers, including the more important New Zealand species, is being made in Sweden at present. Other wood chemical investigations are being made in Switzerland (Dacrydium spp.) and in England (puriri wood) on New Zealand timbers. • (9) Plywood and Related Products.—lnvestigations by British Commonwealth countries on the range of problems covered by this heading will be better co-ordinated by the Corresponding Committee set up as the result of discussions at the 1947 Empire Forestry Conference. In the absence of equipment for laboratory investigations of plywood and glues, the principal matters calling for comment are in the industrial field. During the past year the results of a study of conversion losses in plywood-manufacture undertaken by the Forest Service were published in the Empire Forestry Review. It was also worthy of mention that the very considerable merits of insignis pine for rotary peeling are beginning to be appreciated. It is being used to an increasing extent for cores and cross-banding of thick plywood with high-class faces and backs. From observations made in the United States of America, the application of high frequency to the edge-gluing of the component pieces of sawn timber used for cores of wide, assemblies (such as counter tops) has a great deal of merit. A local firm was assisted in the drying of £ in. thick, rotary-cut insignis pine veneer, a standard type of timber-drying kiln being used, with crude trays for the veneer sheets. Green veneer was dried down to 11 per cent, moisture content in seven hours. The broad latewood zones in some sheets are apparently slower drying than the lightercoloured wood.

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CHAPTER YI—COMMERCIAL DIVISION Inspector in Charge : Mr. W. C. Ward Departmental Logging Operations 1. Log-production.—Departmental logging operations were conducted during the year in four conservancies and in fifteen forests, and the current year's production showed an increase of 31 per cent, over that of the previous year. Production statistics for the past three years are as follows | — Cn. ft. 1946-47 .. .. .. .. .. 4,436,000 1947-48 .. .. .. .. .. 5,818,000 1948-49 .. .. .. .. .. 7,603,000 Of the 1948-49 production, 36 per cent, was from indigenous forests and 64 per cent, from exotic forests. Of the latter, 66 per cent, of the yield came from clear-felling, 28 per cent, from thinnings, and 6 per cent, from salvage operations. Major logging operations are reviewed hereunder, and figures for each forest are given in Appendix XIII (a) Auckland Conservancy : Pureora Forest.—Efforts were concentrated largely on the salvage of fire-damaged trees, and a record production of 1,017,000 cubic feet resulted. This operation concluded during the year, and normal production of green sawlogs was resumed. Three sawmills situated near the forest are supplied under contract from this logging scheme, and a temporary supply for one year only is being made to one other sawmiller. In conformity with the policy of conservation of indigenous-timber supplies, deliveries to another sawmiller ceased during the year. {b) Rotorua Conservancy : Whakareivarewa Forest. —Production for the year totalled 1,905,000 cubic feet, of which 1,638,000 cubic feet of sawlogs were delivered to the departmental sawmill at Waipa. The remainder was in the form of mine props, fencing-materials, and poles. Thinning operations supplied 44 per cent, of the logs produced from the Whakarewarewa Forest. Kaingaroa Forest.—A record production of 2,267,000 cubic feet was attained in this forest during the year. In addition to providing all of the sawlogs for the Department's Kaingaroa Sawmill, operations in this forest provided 44 per cent, of the logs for the Waipa unit. Thinning operations supplied 13 per cent, of the total log output from Kaingaroa Forest. WJiirinaki Forest. —Of the total production of 1,445,000 cubic feet, 92 per cent, was sold as sawlogs and 8 per cent, as peeler logs. Sawlogs were delivered to three sawmills which have purchased log-supplies on a longterm basis, and to one sawmill on a temporary basis only. In accordance with the departmental "policy of setting the standard for forest industries, the Service is supplying some of the finest peeler logs in the Dominion, and 119,000 cubic feet were sold during the year to plywood-factories. (c) Canterbury Conservancy.—Small logging operations have been carried out in three forests in this conservancy. Balmoral and Eyrewell operations were confined to salvaging wind-thrown timber. At Hanmer Forest, thinning operations yielded fencing-material and poles. Sawlogs from the Balmoral and Eyrewell operations are sold to private sawmillers, while Hanmer produce is treated at the local departmental creosote plant. (d) Southland Conservancy. —Logging operations on a small scale have been conducted in six exotic forests in the Southland Conservancy. These operations have supplied logs to six sawmills, including the departmental pilot sawmill at Conical Hill.

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2. Log Sales. —Sawlogs and peeler logs comprised 89 per cent, of all logs produced by departmental logging schemes. The quantities and values of logs sold during the last three years were :

The increase in production of indigenous species resulted mainly from the first full year's operations in those areas in which new log sales were made in 1946. During the past year logs were sold to twenty-two sawmills, deliveries being as follows :

Departmental Sawmilling Operations 1. Sawn Output. —Sawn-timber production in departmental sawmills amounted to 22,831,000 board feet for the year. This represents approximately 5 per cent, of all timber produced in New Zealand during the year, and 14 per cent, of all exotic-timber production. For the first time more than half of the total output was sold in the form of sawn timber. The balance was used for boxmaking and for departmental building purposes. Statistics of the production and distribution of sawn timber during the past five years are given in Appendix XIV. 2. Waipa Sawmill—This mill again averaged a forty-eight-hour week throughout the year, with the circular rig again working both a day and a night shift. During the year, 265 nine-h.our days were worked, and production was again a record for this plant. Sawn timber produced and profits earned by this mill each year since it commenced operating during 1940 are shown in the following schedule

The reduced profit for 1949 is due to two causes : (a) the alteration of the exchangerate in August, 1948, meant that some of our prices for the Australian market had tobe reduced ; and (b) considerable lapses occurred between the time wage increases for

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— Indigenous. Exotic. Total. Value. Cu. ft. Cu. ft. Cu. ft. £ 1946-47 1,174,000 2,783,000 3,957,000 154,300 1947-48 .. 1,721,000 3,284,000 5,005,000 203,600 1948-49 2,707,000 4,082,000 6,789,000 288,900

—- Indigenous. Exotic. Total. Percentage. Number of Mills. Cu. ft. Cu. ft. Cu. ft. Private sawmills 2,705,000 289,000 2,994,000 44 19 State sawmills 3,795,000 3,795,000 56 3 Total 2,705,000 4,084,000 6,789,000 100 22

Year Ended 31st March, Log Frame Mill. Circular Rig. Total. Profit. Bd. ft. Bd. ft. Bd. ft. £ 1941 .. 4,064,000 4,064,000 8,500* 1942 .. 6,346,000 6,346,000 9,000 1943 .. .. 7,696,000 7,696,000 7,100 1944 .. 8,272,000 872,000 9,144,000 13,700 1940 .. 10,066,000 2,345,000 12,411,000 20,100 1946 .. 11,379,000 2,379,000 13,758,000 21,400 1947 .. 12,367,000 3,771,000 16,138,000 14,900 1948 .. 12,649,000 4,132,000 16,781,000 22,800 1949 .. 13,300,000 4,691,000 1 17,991,000 19,200 * Loss during first part-year of operation.

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timber-workers were granted and the time when compensating increases were authorized in timber prices—e.g., an increase on account of a wage rise in November, 1947, was not authorized until August, 1948, and a wage rise in January, 1949, had to be carried until March, 1949. Logs sawn consisted of insignis pine, 66 per cent; larch, 23 per cent.; corsican pine, 10 per cent.; and other species, 1 per cent. The proportion of clear-felled insignis pine was lower than last year's figure ; and this was reflected in a reduction in the -average log size and a slight increase in the production of narrow widths. The yield for the year was : Per Cent. Up to 6 in. wide .. .. .. .. .. 60 Over 6 in. to 9 in. wide .. .. .. .. 32 Over 9 in. wide .. .. .. .. .. 8

One new 66 ft. kiln was completed and brought into operation during the year, increasing the total kiln capacity to six 66 ft. and one 20 ft. chambers. Based on the •assumption that the plant is capable of drying for 335 days of twenty-four hours, the kiln operating factor was 94 per cent. The quantity of timber dried per kiln hour was 255 board feet. Comparative kiln-drying figures for the past five years are given in the following schedule

The kiln-drying costs of this unit are the lowest in New Zealand. The Waipa plant was established to turn out a superfine product, and proof of the quality of its output lies in the very keen demand which exists for kiln-dried timber on the Australian market. It is reported that this timber has established a standard in Australia against which timber from all other New Zealand sources is judged. With the higher output from the sawmill and a reduction in the amount used by the box-factory, substantially larger quantities of sawn timber were available this year for sale. Demand for timber remained firm, and an improvement in the shipping position •enabled the previous year's exports to Australia to be more than doubled, shipments

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Year Ended 31st March, Sold or Used Green. Filleted for Air Seasoning. Filleted for Kiln Dryin t. Bd. ft. Per Cent. Bd. ft. Per Cent. Bd. ft. Per Cent. 1945 3,629,000 29 3,366,000 27 5,444,000 44 1946 .. 3,917,000 28 2,486,000 18 7,355,000 54 1947 .. 5,846,000 . 36 3,167,000 20 7,126,000 44 1948 .. 4,534,000 27 2,670,000 16 9,577,000 57 1949 4,241,000 24 2,672,000 15 11,038,000 61

Year Ended 31st March, Green. Part Air Seasoned. Total. Percentage of Production Bd. ft. Bd. ft. Bd. ft. 1945 .. 5,196,000 487,000 5,683,000 46 1946 .. 7,077,000 750,000 7,827,000 57 • 1947 .. 7,525,000 721,000 8,246,000 51 1948 .. 8,611,000 1,162,000 9,773,000 58 1949 .. 11,323,000 557,000 11,880,000 66

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being made to New South Wales, Victoria, Queensland, and South Australia to secure the widest practicable distribution. Details of distribution and stocks held for the past five years are given in the following schedule :

During the year, experiments were conducted in the sorting of timber for length and wire-bundling into packets containing 600-1,000 board feet for ease of handling both on to rail trucks and into ships' slings. The trials were very successful, and all concerned have expressed the keenest interest in the wider adoption of this procedure. So far the acute shortage of wire has been the principal limiting factor, but with the gradual easing of the supply position it is expected that a large proportion of future shipments will be bundled. As in the past few yeajs, there was again a seasonal shortage of rail trucks during March and the use of road transport was necessary to relieve the congestion in the mill vards at Waipa and Kaingaroa. During the period March-May last year, 675,000 board feet were forwarded by road ; but this year the truck shortage is not likely to continue beyond the end of April, and by then approximately 550,000 board feet will have been forwarded by road. 3. Kaingaroa Sawmill. —This was the first full year of operation for this mill. Logs sawn were almost entirely insignis pine ; and the mill worked an average forty-eight-hour week, operating 264 nine-hour days for a total production of 4,421,000 board feet. Last year it cut 1,094,000 board feet during the four months it was in operation. Of this year's output, 4,095,000 board feet were sold or used green and 326,000 board feet were filleted for air seasoning. Sales during the year amounted to 3,835,000 board feet, of which all except 66,000 board feet was green timber. At the end of the year stocks on hand amounted to 419,000 board feet. 4. Conical Hill Sawmill. —Construction of this mill, the log supply for which will come from the group of small forests locat.ed near Tapanui, was commenced during the vear. The sawmill will include two 30-in. gang frames, and a bandmill with auxiliary machines ; boiler and power house, dry kilns, and ancillary workshops will also be erected. This mill will come into operation during 1950 with an annual output of 6,500,000 board feet; but it is planned to double this figure about thirteen years later in accordance with the potential forest yield by that date. A small pilot mill was erected during the past year, but it operated only intermittently to cut timber as required for the main building programme. A total of 458,000 board feet was cut, and,, of this, 230,000 board feet was held in stock at the end of the year.

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Year Ended 31st March, Sawn-timber Sales. Stocks. New Zealand. Australia. Quantity. Percentage of Production, Quantity. Percentage of Production. Quantity. Percentage of Production. Bd. ft. Bd. ft. Bd. ft. 1945 2,980,000 24 63,000 1 3,076,000 25 1946 4,431,000 32 537,000 4 2,804,000 21 1947 6,903,000 43 911,000 6 3,000,000 19 1948 4,802,000 29 1,539,000 9 3,372,000 20 1949 5,977,000 33 3,329,000 19 3,780,000 21

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Waipa Box-factory and Planing -mill The demand for box-shooks in the North. Island showed a recession from last year's peak. Less than 4 per cent, of the year's manufacture was exported, but, with a further reduction in the domestic demand pending, a corresponding increase in exports to Australia will be sought during the coming year. Details of the annual production and profits earned since operations commenced in 1941 are shown in the following schedule :

Wood-preservation Plants 1. Waif a. -Owing to the lack of seasoned produce for treating, the plant operated at only 50 per cent, capacity for the first half of the year ; but from then on stocks were sufficient to maintain the plant in full production. The additional treating-tanks installed will assist in meeting the keen demand for posts and poles. Practically all round produce treated was larch, and details are given in the following table

Kelevant figures for sales and stocks On hand for the same five-year period are as follows :

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Gross Timber Input. Year Ended 31st March, Profits. For Shook For Dressing Manufacture. Only. Bd. ft. Bd. ft. £ 1942 2,627,000 2,800 1943 4,380,000 8,200 1944 .. * - • 7,763,000 86*000 15,400 1945 7,645,000 383,000 20,600 1946 8,691,000 459,000 19,500 1947 7,468,000 862,000 8,300 1948 9,593,000 414,000* 27,800 1949 7,957,000 636,000 19,600

Year Ending 81st March, Posts, &0. Poles. Miscellaneous. Total Volume Creosoted. Creosote Used. 1945 1946 1947 1948 .. •• : • • 1949 Number. 93,500 34,400 38,100 23,100 77,600 Number. 2,900 9,700 600 6,500 Cu. ft. 3,900 5,700 12,100 8,600 16,100 Cu. ft. (approx.) 99,700 93,100 49,100 35,600 131,700 Gallons. 107,300 89,000 45,000 34,800 105,900 •

- Year Ending 31st March, Sales or Transfers. Stocks on Hand at 31st March. Posts, &c. Poles. Treated Posts. Untreated Posts. ■ Treated Poles. ■ Untreated Poles. 1945 1946 1947 1948 1949 Number. 101,100 45,700 43,800 7,900 99,500 Number. 2,700 5,400 6,600 300 6,100 Number. 23,100 9,800 6,300 23,700 3,000 Number. 69,200 37,300 58,700 55,000 127,000 Number. 1,300 j 4,800 5,800 600 1,000 Number. 9,700 200 1,200 9,200

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The experimental pressure cylinder was brought into operation in July, and 145 charges were treated during the year. A commercial pressure treating plant is now being installed, and with the information obtained from the experimental plant it is hoped that full-scale production will be possible immediately the main plant is ready. 2. Hanmer. —This plant again operated well below capacity, the reason being insufficient labour to cut an adequate supply of round produce for seasoning*. Production details are shown in the following schedule :

Relevant figures for sales and stocks on hand for the same five-year period are as. follows :

3. Conical Hill. —Owing to the unsatisfactory condition of this plant, no new material was delivered for seasoning and subsequent treatment, operations being confined to treatment of seasoned stocks on hand. During sixty-seven days' operation the plant treated 2,100 posts, strainers, &c., 36 poles, and 34,600 board feet of timber,, a total of 7,100 cubic feet of produce, with a consumption of 5,876 gallons of creosote. All produce treated is being used by the Forest Service ; and treated stocks at the end of the year consisted of 29,000 posts, strainers, &c., and 500 poles. National Sawmill and Pulp and Paper Project During April-May, 194.8, two representatives of the Rust Engineering Co., of" Pittsburg, Pennsylvania, which firm had been engaged by the Government to report upon the economic and engineering aspects of an integrated pulp and paper projectat Murupara, visited New Zealand to critically examine the proposed plant sites, to gather data, and generally to familiarize themselves with local conditions. Owing to unforeseen delays, the Rust Engineering Co.'s report was not received until just afterthe end of the year. For the design of the large sawmill to be intergrated with the pulp and paper mill the Government engaged the services of Mr. W. H. Rambo, Industrial Plant Engineer,, of Portland, Oregon, who is widely regarded as the foremost sawmill consultant in North America at the present time. During the year, two senior officers of the

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Year Ending 31st March, Posts, &c. Poles. Miscellaneous. Total Volume Creosoted. Creosote Used. Cu. ft. Number. Number. Cu. ft. (Approx.) Gallons. 1945 500 2,100 12,000 8,000 1946 2,000 2,000 ioo 14,600 11,500 1947 100 800 400 1948 *700 1,100 1,300 12,400 6,000 1949 2,800 1,300 600 7,100 3,800

Year Ending 31st March, Sales or Transfers. I Stocks on Hand at 31st March. Posts, &c. Poles. Treated Posts. Untreated Posts. Treated Poles. Untreated Poles. Number. Number. Number. Number. Number. Number. 1945 1,000 3,000 6,900 2,000 2,200 2,100 1946 1,900 2,100 7,000 2,100 100 1947 2,000 800 4,900 1,400 700' 1948 2,600 1,500 3,100 2^600 900 1,300 1949 4,500 900 1,500 16,900 1,300 1,900

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Commercial Division proceeded to Portland to advise Mr. Rambo of local requirements and conditions ; they spent three months working with him on the sawmill design. Mr. Rambo's report was received in January. The Ministry of Works furnished detailed reports on the harbour, railway, and housing developments which are essential to the project; and the Forest Service, in addition to preparing the working plan covering that portion of Kaingaroa Forest which will supply the raw material, reported on other aspects such as logging, roading, water-supply, &c. CHAPTER VII—ENGINEERING DIVISION Inspector in Charge : Mr. V. C. Rapson Surveying- and Mapping 1. Surveys.—Essential survey work in most conservancies is still delayed through shortage of trained staff, and the few additions to staff during the year have not relieved the situation to any appreciable extent. The following survey work was carried out during the year : » (a) Exotic forests— Acres. Topographical surveys .. .. .. .. 1,727 Subdivision into compartments .. .. .'. 4,500 Forest-type surveys .. .. .. .. 304 Preliminary triangulation survey at Rotoehu forest 20,000 (b) Indigenous forests — Boundary surveys : 180 timber appraisal areas .. 18,485 Reconnaissance surveys .. .. .. .. 5,864 In addition, topographical surveys for the purpose of village and housing sites were carried out at Omahuta, Tairua, Kaingaroa, Esk, and Hanmer Forests. Other work included : (a) Surveying 446 chains of new roads. (b) Reconnaissance of 12 miles of road-line. (c) Surveying 272 chains of forest boundary. The value of aerial surveys for forest reconnaissance and assessment surveys, as well as for the national forest survey, is becoming more and more evident, and wherever aerial photographs are available they are being used to an increasing extent. 2. Mapping. —In connection with current operations, the following work was carried out: 225 plans were prepared ; 5 stock maps, 3 topographical maps, and 1 indigenous forest record map were drawn ; and 2 stock maps were redrawn. Thirtyone forest atlas sheets were renewed, and 273 new plans were recorded. A considerable amount of work for the draughting staff was entailed in connection with the reconstitution of all fire districts under the Forest and Rural Fires Act, 1947. Five maps were prepared for fire lookout stations and fire-control purposes. The work of compiling the forest-type maps in connection with the national forest survey which is being undertaken by the Aerial Mapping Branch of the Lands and Survey Department is proceeding slowly, and is at present far behind the field-work. To date, 5 type maps have been prepared, while the field-work has been completed for a further 5 maps. The library of aerial photographs was enlarged by the addition of 26 mosaics and 3,170 prints, and now contains 13,030 prints and 82 mosaics. Fifty-four mosaic copies were obtained for the use of conservancy offset s and district stations.

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Civil Engineering 1. Roads and Bridges— Construction of new forest roads and surfacing of existing roads during the year were as follows :

The above figures do not include work on streets in State forest villages. In most of these cases the work is only partially complete, being dependent on the construction by contract of kerbing and. channelling, storm-water drains, sewers, and water-mains. Forest roads totalling over 850 miles were maintained in reasonable condition, but lack of man-power and suitable equipment still prevent attainment of the desired standard. Six miles of access tracks were constructed, and maintenance work was carried out on a further miles. Six new road bridges and two pedestrian suspension bridges were constructed, and existing structures were maintained to as high a standard as possible with'the limited man-power available. 2. Water-supply and Drainage.—The contractor has not yet completed the standpipe and reticulation for the Kaingaroa forest village ; nevertheless, completion is expected at an early date. Reticulation has been completed at Waipa and Minginui Villages ; while at fcotaki, Mamaku, Pureora, Karioi, Gwavas, Hanmer, Ashley, Eyrewell, and Golden Downs various improvements have been effected, chiefly by way of extra storage, improved supply, or the installation of booster pumps for emergency fire-fighting service. Many of the forest villages are not yet large enough to justify an expensive watersupply system which would give immediate fire-fighting pressures ; in such cases good storage and a pump for boosting the pressure are provided. Storage by means of concretestave tanks has been provided at Wairango (for forest fire protection) Waiotapu, Hanmer, Ashley, Karioi, and Gwavas. A number of small reservoirs have been created behind road fillings to provide supplies for fighting forest fixes, while several domestic supplies have been provided or augmented with new bores. Samples of water have been taken at regular intervals for analysis for the purposes of the pulp and paper scheme. A measuring weir to gauge the flow of a spring-fed possible source of supply for the pulp and paper mill was also constructed. The provision of all reasonable amenities in forest communities is necessary in order to attract and retain the best type of employee, and one of the most important of these amenities is the installation of a water-borne sewage system. With the development of forest communities and improvements to water-supplies, sanitary drainage has been improved in villages and camps wherever possible. Architectural 1. Buildings. —Very satisfactory progress has been made in three conservancies— Rotorua, Nelson, and Canterbury—with the provision of accommodation for both married and single employees, and also with the construction of essential workshops, garages, stores, &c. Difficulties are still persisting in the arrangement of contracts,

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Conservancy. New Forest Metalling or Roads. Other Surfacing. M. ch. M. ch. Auckland 9 20 2 60 Rotorua .. .. 19 76 18 58 Wellington .. .. 13 45 1 26 Nelson .. 9 71 Westland .. .. 3 47 Canterbury 2 2 15 16 Southland 11 16 Total . 69 37 38 0

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particularly in isolated localities, and in the supply of materials. The following schedule lists the buildings erected and in course of erection according to a broad classification, but does not include activities within the mill grounds at the various State sawmills, which are shown under another heading :

Building operations connected with, the Waipa Mill include the completion of the export dry store, erection of a Quonset hut as a store at the railway, erection of a new yard office, and the conversion of the former plant workshop for other purposes. At the Kaingaroa Mill, additions have been made to the sorting-table, and work has commenced on the permanent log-skids and log-sorting'chain. Progress at Conical Hill Sawmill is very slow. A contract has been let for the construction of the main mill building, while a store, dry-loading shed, and log-sorting chain structure have been constructed, and the log pond partially built, by day-labour. 2. Community Planning.—The Forest Service is indebted to the Housing Division, Ministry of Works, for planning the layout of forest communities. Localities planned so far include Glenburvie, Tairua, Pureora, Kaingaroa, Minginui, Waipa, Kiorenui, Wairapukao, Karioi, Gwavas, Golden Downs, Hanmer, Balmoral, Ashley, Eyrewell, and Tapanui. Progress is slow, but in many instances streets and footpaths have been formed and kerbing and channelling commenced. Where development is sufficiently advanced, lawns have been sown and recreational facilities provided. No permanent community buildings have yet been commenced, on account of the necessity for concentrating on more essential buildings ; but steel huts have been erected in several pf the localities to serve as community halls. The planting of ornamental shrubs will be undertaken during the coming year. Mechanical Engineering and Transport 1. Utilization Plants.—At the Waipa Mill the boiler installation is now sufficient to enable the brickwork and boilers to be given more intensive maintenance than they received prior to 1947. A surface condenser was installed during the past year of sufficient capacity to deal with the exhausts from all engines, and the old condensers were discarded. An alteration was made to the arches of Nos. 2 and 3 boiler furnaces,

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Type of Building. Completed During Year. In Progress at 31st March. Houses — Standard type 36 52 Sawmill workers' type 42 12 Temporary 5 1 Dormitory blocks Single men's huts 3 2i<3 21 Camp ablution block and/or sanitary block .. 7 5 Camp kitchen —dining-room 1 1 Recreation-rooms 5 Plant workshop 4 3 Plant garage 5 2 Power-house (for Diesel-driven generator) .. 1 Stable 1 Blacksmith's shop .. .. 3 1 Fire depot 3 1 Fire lookout 2 Office and/or store 19 House renovations 13 Buildings removed and re-erected 6 Buildings enlarged or altered 11 Miscellaneous small buildings 14 i Sixteen-unit flat I

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which, with an alteration to the design of the fuel chute, improved the flow of fuel to the furnaces. Other boiler furnaces will be treated similarly as opportunity permits. One generator broke down and was out of action for several weeks, but even with this handicap 65 per cent of the power required was generated by the mill. At the same time steam to the kilns and creosote plant was maintained, except on a few occasions when fuel ran short. Steam heating was also installed in the main office, boxmill office, and girls' rest-room. No. 7 kiln came into operation in May, after which No. 2 kiln was given a complete overhaul, including the fitting of new fans. In the box-factory a Johnsered bandsaw was installed, and the other machines were maintained. The supply and installation of additional machine tools, partly ex-German reparations, has increased the efficiency of the fitter's shop. The pilot pressure preservative treatment plant came into operation in July, and two open treating-tanks, 37 ft. and 18 ft. long respectively, were added to the commercial treating installation. Part of the area required for the new seasoning-yard has also been cleared. Apart from minor outbreaks of fire in the boiler-room, there were two fires at the Waipa Mill, but both outbreaks were quickly brought under control by the mill fire brigade. 2. Plant Workshops. —In order to cope fully with the repair and maintenance of the mechanical equipment operated by this Service, plant workshops have been erected at Waipa (Rotorua), Karioi, and Golden Downs (Nelson). Further workshops are being built at Pureora, Ashley, and Tapanui. The bulk of the equipment, such as lathes, drilling-machines, millers, grinders, &c., have been obtained from German reparations. Mechanics, fitters and turners, welders, and other essential personnel have been obtained for the completed shops, and no difficulty is anticipated in obtaining staff for those shops now completing. 3. Transport. —The demand for transport is most acute. Many of the vehicles in operation are long past the end of their economical life, and are costly to retain in commission. Expansion of Forest Service activities has developed a demand for new vehicles, which, under the present supply conditions, cannot be procured. In addition, vehicles at present carting logs and sawn timber will in some cases require replacement during the next twelve months. Thirty-eight new vehicles were added to the fleet; three went to Auckland, fifteen to Rotorua, four to Wellington, three to Nelson, two to Westland, five to Canterbury, and six to Southland. Two ambulances were obtained through the War Assets Realization Board, one going to Pureora and the other to Golden Downs (Nelson). 4. Logging and Earth-moving Equipment.—Oris 12-yard carryall scraper was obtained from the Ministry of Works for use in the Rotorua Conservancy. Two new tractors were purchased during the year, and are now operating at Conical Hill in the production of logs £nd the maintenance of extraction routes. Fibe Control and Communications 1. Forest and Rural Fires Act.—The Forest and Rural Fires Act, 1947, came into force on the 18th November, 1947. All previous Acts authorizing the constitution of fire districts were repealed, but section 53 (2) of the Act provided that fire districts created under any of the repealed Acts were to continue in existence until the 18th November, 1948, or until a new fire district was constituted, whichever was the earlier. It is likely that eventually 68 rural fire districts will be constituted under the Act; at the present time 62 fire districts containing a total of 4,244,010 acres have been constituted, and are shown in detail in Appendix XII. The remaining 6 rural fire

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districts are in the initial process of being constituted. A summary follows showing the number of districts controlled by the various Fire Authorities and the forest areas which are protected : Fire Authority. Number of Fire Districts. Commissioner of State Forests .. .. 45 gazetted and 4 pending. Rural Fire Committees .. .. .. 6 gazetted and 2 pending. Local bodies .. .. 11 gazetted. Fire districts protecting — State forests .. .. .. •. .. .. 39 Watershed reserves .. .. .. .. 6 Private forests administered by Rural Fire Committees .. 5 Private forests owned by or vested in local bodies .. 5 Development areas administered by other Government Departments .. . . . . .. .. 4 National parks and an endowment .. .. 3 Crown and Maori land administered by Rural Fire Committee 1 One also includes a national park. Before an Order in Council constituting a fire district is issued, the Minister is required to advertise the proposals in a newspaper circulating in the locality and deposit ■a plan and notice setting out the proposals for public inspection ; any person affected is given one month in which to lodge an objection. Any objection received is considered by the Minister or by some person appointed by him, and if it is not well grounded the Order in Council is issued. Ten objections were lodged against the constitution of the various rural fire districts, but there is only one which has not been settled. This objection concerns the Waipori Rural Fire District, administered by the Dunedin City Council as the Fire Authority, but it is anticipated that satisfactory arrangements will be made and the district constituted before the next fire season. Following the expiry on 18th November, 1948, of the period during which fire districts constituted under other Acts continued in force unless reconstituted under the Forest and Rural Fires Act, 1947, forest-fire prevention and control throughout the Dominion now comes under the provisions of the latter Act, except State Forests, which are not protected by rural fire districts. Such State forests, as hitherto, are administered under the Forests Act. Under the principal Act there was no provision for the administration of areas not controlled by County Councils, but this has been remedied by an amendment authorizing adjoining Fire Authorities or a Conservator of Forests to exercise control over such areas. Another defect revealed in the principal Act is the absence of power for a Fire Committee of a rural fire district to borrow money to meet expenses in the event of an emergency. This is a necessary provision and is favourably recommended for amending legislation. The Act will for the first time be in full force and effect during the 1949-50 fire season, and the rapid progress made in the reconstitution of fire districts ensures that practically all areas of high fire hazard will be covered by its provisions. It is regretted, however, that mention must be made of the tardiness of certain commercial forest interests in making the necessary preliminary arrangements to have the provisions of the Act applied to the protection of their forests ; they rather appear to be depending on the consequential protection afforded by adjoining Fire Authorities. It. is a basic principle of the Act that an owner is required to accept responsibility for the physical protection of his property. It is therefore imperative to have complete coverage and co-ordination in districts embracing a number of owners, and all owners must accept their share of the responsibility. Consequently, in certain instances it may be necessary to apply the provisions of the Act without further prolonged delay to ensure that the administrative machinery is in force during the next fire season.

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In counties with a high fire hazard the provisions of the Act are being enthusiastically administered by the County Councils concerned; and with greater knowledge of the powers conferred by the Act the somewhat hesitant action apparent during the previous fire season was not'evident during the 1948-49 fire season. Those counties with a lesser fire risk are also taking a greater part in the administration of the Act. There has been some confusion in catchment districts owing to Catchment Boardsbeing empowered to make by-laws prohibiting the lighting of fires. However, in all cases that have come under notice confusion and duplication have been avoided by co-operation between the Boards and Fire Authorities, provision for which is contained in the Act. An important provision of the Act authorizes a Rural Fire Officer to prohibit certain operations during- periods of fire danger within his district. In a time of emergency the issue of an order by radio will undoubtedly be necessary, and accordingly arrangements have been made with the National Broadcasting Service for the broadcasting of such orders. To assist the National Broadcasting Service, a roll of Rural Fire Officers is being compiled and will be supplied to that Service for reference purposes. An order for broadcasting may be sent direct to the broadcasting station concerned or through the nearest Conservator of Forests or other forest officer. In auv case, the latter officers will be consulted to establish the authenticity of an order, and whether it complies with the provisions of the Act, before it is broadcast. It is provided under the Act that Fire Authorities may act together in the exercise of their powers, and it is important before any order is issued that a Fire Authority should consult adjoining Fire Authorities, because it may be desirable for one order to cover several counties or parts of counties, particularly an order prohibiting the lighting of fires. This procedure was followed in some districts during the past fire season ; and in some instances joint action has been agreed upon between counties and between counties and Catchment Boards. There was a complete absence of serious fires during the last fire season, no doubt due to the activities of local Fire Authorities in hazardous districts ; and as the organization for the prevention, detection, control, and supression of fires is strengthened it can be expected that serious fire damage will become history. Close supervision and keen administration are necessary to achieve the objective of the total elimination of dangerous fires throughout the Dominion, and at the same time to assist primary production ; but experience during the comparatively short period that the Act has been in operation shows that it will prove an effective instrument when it is fully understood and implemented. 2. Fire Damage.—The total number of recorded fires in State forests during the year was 32, of which 24 occurred in indigenous forests and Bin exotic forests. The area affected was 502 acres ; but all except half an acre was tussock, fern, and cut-over land. One fire in an exotic forest unfortunately resulted in the destruction of a forest workers' hostel which was nearing completion. There were 40 fires outside State forests, affecting an area of 2,024 acres. Of these, 4 fires in private plantations destroyed 552 acres of exotic forest. The remainder were in tussock, fern, and scrub country. Three sawmills were destroyed by fire, and one was damaged by fire following lightning. Details are as follows : Destroyed— Townsend and Lithgow, Mangatapu. Canterbury Sawmilling and Timber Co., Ltd., Pudding Hill. Kopara Sawmilling Co., Ltd., Totara River. Damaged : Aitken and Gillespie, Ltd., Christchurch.

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Comparative fire statistics are as follows :

3. Fire Detection and Control.—Weather conditions were exceptionally favourable in most districts during the fire season; well-distributed rains kept the vegetation, which normally drys out towards mid-summer, green to some extent until the autumn freshening of growth. Canterbury was an exception to this, dry and very hot weather with low humidities setting in early in January and continuing with brief respites almost until the end of the fire season. In the central North Island districts there was a short spell of hazardous conditions late in December and again in February. The number of fires in State forests was the lowest for a number of years ; only one fire occurred in exotic forests, and the damage from this was held to the loss of less than half an acre. This fire started in the centre of the forest while a high and dry wind was blowing, and had it not been for the quickness and efficiency of the fire organization in the forest, serious loss might have resulted. The assistance given by the Weather Office in providing special forecasts, and the National Broadcasting Service in broadcasting warnings, has again been most helpful. Aerial fire patrols from the Rotorua Airfield were carried out as in previous years ; these patrols, apart from their direct purpose in observing and reporting on fires, are proving a valuable adjunct to our publicity measures in furthering the development of fire consciousness amongst the general public. The aircraft (Austers) now used for the work, with their greater range, better visibility, and comfort for crews, are giving an improved service. The willing assistance and co-operation of the Air Department and Air Force personnel are again gratefully acknowledged. Aerial patrols for other districts were unnecessary this season. Fire-fighting equipment acquired during the year included 27 locally-built trailers to carry the power-driven pumps mentioned in last year's report, and the necessary accessories, which include 1,060 ft. of 1J in. hose in three pack-sacks. The trailers are fitted with a standard ball hitch suitable for towing by any vehicle in the Service. The convenience of these pumps for manual transport in rough country, and the ease with which the hose can be run out, make them extremely valuable units of fire-fighting equipment under suitable conditions. A 100 ft. lookout tower with quarters for a married man was erected at the Eyrewell Forest. Six-bay depots for mechanized fire equipment were erected at the Ashley, Balmoral, Hanmer, and Eyrewell Forests ; and a lookout for the Tapanui group of forests has been practically completed. 4. Communications. —New telephone-lines erected comprised 7 miles of earthworking circuit and 9 miles of metallic circuit ; and 7 miles of earthing-working circuit were renewed. The total length of lines is now 536 miles, of which 213 miles are of metallic circuit. A total of 282 fixed instruments is installed ; and 14 portable telephones were purchased during the year, bringing the total to 84.

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Year. Fires in State Forests. Other Fires.* Sawmills Number. Area Affected. Number. Area Affected. Destroyed. Acres. Acres. 1944-45 17 1,990 52 3,920 2 1945-46 62 16,330 311 574,000 9 1946-47 44 1,700 88 2,700 5 1947-48 48 4,200 127 24,800 6 1948-49 32 500 40 2,020 3 * Fires within ten miles of a State forest boundary.

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A radio-telephone installation was completed in the Canterbury Conservancy at. Ashley, the control station for that conservancy, the equipment comprising a 45-watt dual-frequency transmitter and associated receiver. The total number of transmitters, in use in fixed locations is now 27, as follows : Auckland .. ~ .. 8 Rotorua .. .. .. .. ■ ■ .. 16 Canterbury .. .. .. .. ... 1 Southland .. .. .. .. .. 2 Installations have also been made in a mobile fire-fighting headquarters vehicle, thefire control officer's light truck at Kaingaroa, and the Head Office inspection vehicle. In addition transportable equipment is available in Auckland and Rotorua for use in the field. Extensions to existing installations are being carried out in the Auckland, Canterbury,, and Southland Conservancies, and work is proceeding also in Wellington and Nelson Conservancies. Another mobile fire-fighting headquarters vehicle which has been delivered to Kaingaroa is being fitted with radio. Transportable equipment is being prepared for use where required. For the forest fire hazard prediction service, data are sent from the control stations of the Auckland, Rotorua, and Canterbury Conservancies to the Post and Telegraph receiving-station at Makara, Wellington, by radio telephone, and thence by line telephone to Head Office. In this way information from remote areas is received for analysis within an hour of the readings being taken, and the extension of the system to other conservancies is in hand. 5. Water-supplies. —The continuing shortage of steel and cement has restricted progress in the provision of static water-supplies at strategic points for fire-fighting. A 5,000-gallon concrete tank with a catchment apron was constructed on Ashley Forest.. On Golden Downs Forest the construction of rain-storing reservoirs is proving a simple matter. They are simply dozed out anywhere on the ridge tops where there is a sufficient catchment area, the hard compacted subsoil in the ridge tops of the Moutere hills, being apparently impervious to water. Such reservoirs hold water during the hot dry summer characteristic of this district with little more than evaporation loss. CHAPTER VIII—OPERATIONS DIVISION Inspector in Charge : Mr. W. J. C. Kinloch Organization and Staff (1) Organization. —No major changes have been made in the Departmental organization during the year, the endeavour being to consolidate changes made in previous years and to develop suitable new officers for the key positions or as understudies to the key officers. (2) Staff. —In common with other organizations, major difficulties are being experienced in securing suitable staff to maintain essential servicing. In any expanding Department this difficulty becomes of major concern, and within the Forest Service applies particularly to the Clerical Division. Trained clerical officers in all grades are simply not available, and the only effective remedy is more intensive training from within —i.e., by short courses and by " on the job " instruction. The permanent staff now totals 737 and temporary staff 20, making a total of 757, which is a net increase of 133 over last year's figure. New appointees totalled 212, but there were 79 resignations and transfers ; new appointees include 17 technical trainees. who have .commenced practical and theoretical training as future forest officers. Fourteen officers are on leave without pay, of whom 9 are taking a full-time course of study at the University.

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• Comparative statistics of staff for the past five years are as follows, the figures relating to the 31st March in each case :

(3) Honorary Staff. —Under section 18 of the Statutes Amendment Act, 1947 (amendment to section 10 of the Forests Act, 1921-22), all existing appointments of honorary forest rangers lapsed on 31st March, 1948. At the date of expiry, existing appointments numbered 268 During the current year, 119 honorary forest rangers have been appointed under the amended section of the Act. (4) Forest Employment. —A recruiting campaign during July resulted in an increase of over 200, and 110 immigrants from the United Kingdom were allocated to the Forest Service. Unfortunately, there are indications that approximately 60 per cent, of the immigrants electing to undertake forest employment in New Zealand will seek other avenues of employment before the expiry of their two years' term, but those who are content to remain with the Service are proving good employees. While there has been an improvement in the standard of those seeking forest employment, the large turnover continues to be an unsatisfactory feature. Over the twelve months under review, 2,876 commenced work and 2,670 terminated their employment, giving a net increase of only 206 for the year. The main reasons for the large turnover are probably the higher wage-rates and the opportunities for earning overtime in other avenues of employment, coupled with the isolated nature of forest work. Good forest management requires a relatively stable labour force, and it is obvious that this failure to hold employees is-a serious aspect of forest employment. There appears to be no easy solution to this problem, but a possible solution may be found in recruiting youths at school-leaving age and giving them an appreciation of the advantages of forestry as a career, but with emphasis also on the provision of a good standard of amenities and accommodation. The ultimate aim is to develop a stable forest staff against a background of tradition in employment. Comparative employment statistics showing a doubling of the labour strength over the past five years are as follows :

(5) Health and Safety. —Fully-equipped ambulances are now stationed at five of the major operations ; a registered nurse is employed full time at the Waipa State Mill; and instruction in first aid is included in the syllabus for training courses for leading

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Year. Permanent Staff. Temporary Staff. Total. 1945 1946 1947 1948 1949 254 309 325 600 737 171 201 225 59 20 425 510 550 659 757

Number of Employees. Year. As at Average for 31st March. Year. 1944-45 989 992 1945-46 1,299 1,108 1946-47 1,631 1,513 1947-48 1,730 1,675 1948-49 1,936 1,881

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hands. Further attention will be given to the provision of safety equipment, particularly in bush and logging operations. During the year there were 552 accidents, as shown below, but fortunately none were fatal. Cuts .. . . • • 152 | Septic wounds .. .. 71 Strains •• 129 J Eye injuries .. -.31 Fractures .. • • 18 j Miscellaneous .. .. 49 Crushes and bruises .. 102 | Compensation paid to employees :

Legal (1) Forest Legislation.—The Forests Act, 1921-22, was amended during the year by the Forests Amendment Act, 1948, as follows : {a) As from Ist April, 1948, the State Forests Account established under the principal Act is abolished, and all moneys standing to the credit of that account are transferred to the Public Works Account. All moneys which would have been payable into the State Forests Account are now credited to such funds or accounts as the Minister of Finance may determine. All expenditures under the Act are now paid out of moneys from time to time appropriated by Parliament for the purpose. In effect, all expenditure is now a charge on the Consolidated Fund, and not on a separate account as hitherto. In consequence, the amending Act repeals sections 36, 37, 39, and 40 of the Forests Act, 1921-22, and makes the necessary changes in all other statutes affected. Existing payments of fifths and tenths of revenue to County Councils are maintained. . . (b) Provision is made for the setting-apart of sanctuaries withm State forests tor the preservation of indigenous flora and fauna. The constitution of such a sanctuary does not remove the "area affected from State forest, but requires the provisions of the Forests Act as to State forests to be applied in a manner which will maintain the purposes of the sanctuary. (c) The Minister is authorized to acquire and to dispose of shares in companies. id) Powers are also given to deal with the importation and exportation of any tree, tree-seed, timber, or timber product to ensure freedom from disease or insect infestation. These powers are in substitution of section 20 of the Statutes Amendment Act, 1947, which authorized the making of regulations for this purpose. , . Additional powers to make regulations are given to deal with machinery matters relating to imports and exports ; also for prescribing the uses, naming, manufacture, drying, treating, grading, handling, sale, supply, custribution, and disposal of timber and manufactured timber products, and for restricting or preventing the use, sale, or disposal of timbers which are in short supply or which require to be conserved. The latter powers replace certain of the powers of the Timber Emergency Regulations 1939 and amendments which were revoked by section 2 of the Supply Regulations Amendment Act, 1948. Power is given also for the constitution, appointment, or election of advisory committees.

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Year. Total Payments. Total Wages. Compensation per Centum of Wages (Approximately). £ £ £ s. d. 1944-45 5,774 292,483 1 19 5 1945-46 5,548 349,863 1 11 9 1946-47 8,708 497,615 1 15 0 1947-48 6,232 629,948 0 19 10 1948-49 11,988 742,647 1 12 5

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(2) Regulations'.—(a) The Timber Emergency Regulations 1939 (1939/148), Amendment No. 1 (1943/106) and Amendment No. 2 (1945/100), and certain provisions of the Supply Control Emergency Regulations 1939 (1939/131), were revoked by section 2 of the Supply Regulations Amendment Act, 1948. Consequent upon this revocation, the appointment of Timber Controller, all Timber Control Notices, and all powers delegated by the Timber Controller under those regulations to other persons lapsed on the 3rd December, 1948. (b) The Timber Regulations 1948 (1948/211), issued under the powers of the ForestsAmendment Act, 1948, provide that beech timbers may not be sold unless named as specified in the regulations ; also that, except with the written consent of the Director, a Conservator, or other authorized officer, " first-class " (heart) or " medium " kauri timber may not be sold or otherwise disposed of, and no kahikatea or white-pine timber may be used or disposed of for any purpose other than the manufacture of tallow-casks or butter-boxes or use as ships' dunnage ; also that tawa timber or manufactured tawa timber products may not be sold or otherwise disposed of except to a person named in an order approved by the Director or other person authorized by him in that behalf. Provision is also made for particulars of timber stocks to be furnished when required ; also that rimu, miro, matai, and totara building timbers are to be classified and graded according to the National Grading Rules. (c) The Timber Regulations 1948, Amendment No. 1 (1949/72), revoke the restrictions relating to the use, sale, or other disposal of kahikatea or white pine. (d) The Timber Production Advisory Committee Regulations 1949 (1949/46) provide for the appointment of an advisory committee consisting of the Commissioner of State Forests as Chairman, the Director of Forestry as Deputy Chairman, three persons who are officers of the State Forest Service, Department of Labour and Employment, and Ministry of Works respectively, two persons to represent the Dominion Federated Sawmillers' Association (Incorporated) and the West Coast Sawmillers' Association respectively, two persons to represent the New Zealand Timber Workers' Industrial Union of Workers, one person to represent the. Nelson, Westland, and Marlborough Timber Industry Employees' Industrial Union of Workers, and one person to represent the New Zealand Timber Merchants' Federation. All appointments are made by the Minister (Commissioner of State Forests),* and persons other than Government representatives are appointed for a term of one year, but are eligible for reappointment. (3) Fire Control Legislation.—(a) The Forest and Rural Fires Act, 1947, was amended by the Forest and Rural Fires Amendment Act, 1948, principally as follows : Section 10 is extended to authorize a Fire Authority to act in an adjoining area where there is no County Council or other Fire Authority. By an amendment to section 11 a Fire Authority is given discretionary power in the matter of Fire Officers residing in the rural fire district to which they are appointed. An additional clause to section 18 of the principal Act provides that the powers under that section dealing with the prohibition of certain operations during periods of fire danger may be exercised by adjoining Fire Authorities or a Conservator of Forests in any area in which there is no County Council or other Fire Authority. An addition to section 21 provides that the owner of any exotic forest is to provide two safe alternative routes whereby persons employed in the forest may escape in the event of fire ; and a right of appeal to the' Fires Appeal Tribunal from a notice given by a Fire Officer to make such access routes is also given! An amendment to section 26 of the principal Act, which deals with the maintenance of apparatus by persons cutting timber, extends its provisions to provide for securing the safety of personnel from fire.

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An amendment to section 35 widens the powers of Fire Authorities to recover costs of fire-fighting from the owner of property menaced by the fire or to apportion costs among the persons interested if a Fire Authority thinks fit. An owner may appeal against the charge to the Fires Appeal Tribunal. (b) The Rural Fire Committee Regulations 1949 (1949/21), issued under the Forest and Rural Fires Act, 1947, provide generally the necessary machinery for the constitution ■of Rural Fire Committees and the regulating of their procedure. These regulations have general application to all Rural Fire Committees, and they avoid the necessity for repetition each time a Rural Fire Committee is appointed. (4) Other Legislation.—(a) Section 5 of the Nassella Tussock Amendment Act, 1948, amends section 65 of the principal Act, and provides that where a Nassella Tussock Board or County Council is of the opinion that any land should be acquired by His Majesty the King for the purpose of controlling or eradicating nassella tussock thereon, the Board or the Council, as the case may be, may request the Minister of Lands to acquire such land. The Minister of Lands, with the concurrence of the Commissioner of State Forests, may, by notice published in the Gazette, declare any land so acquired to be a nassella tussock control reserve. While any such notice remains in force, the land concerned is deemed to be a State forest within the meaning of the Forests Act, 1921-22, and is to be administered by the State Forest Service accordingly. (b) Section 17 of the Reserves and Other Lands Disposal Act, 1948, cancels the reservation as education endowment land over 14 acres, being Section 3, Block 111, Rankleburn Survey District, Otago Land District, and sets the land apart as permanent State forest. Finance and Accounts (1) New Financial Basis.—During the year under review, legislation was passed which effected a change in the method of financing Forest Service activities on the lines mentioned in the last annual report. The State Forests Account (a separate account within the Public Account) was abolished as from Ist April, 1948, by section 3 of the Forests Amendment Act, 1948, the Act providing that moneys should be received into and paid out of such funds or accounts as may be determined from time to time by the Minister of Finance. The accounts at present approved are the Consolidated Fund and the Public Works Account. The Consolidated Fund is used for the general administrative activities of the Service and, as the fund is financed generally by administrative revenue (taxation, &c.), neither repayment of nor interest on the moneys expended is required. Expenditure from the Fund is appropriated by Parliament under vote : " Forest Administration." The Public Works Account is used in connection with forest development and management, and the development of utilization and administrative units, the Account being financed for this purpose partly by forest revenue and partly by loan-moneys. Appropriation of expenditure is under vote " Forest Development." Vote " Forest Administration shows, in addition to the net amount chargeable against the vote, the total payments by way of salaries and other payments to staff for the whole of the Service, and also certain other payments requiring specific appropriation, regardless of which vote finally bears the charges. That portion of the expenditure which finally comes to charge against Public Works Account is provided for by two deductions from vote " Forest Administration," one under " Salaries " and the other under "Other charges." Vote "Forest Administration " provides. for the operating-expenses (as distinct from development or establishment expenses) of the departmental utilization units, and the revenue from these units is credited to Consolidated Fund. Vote " Forest Administration" also includes an item " Transfer to Public Works Account: contribution towards cost of forest development," which provides

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funds in Public Works Account to meet the costs of those forest activities which do not justify the use of loan-moneys or of forest revenue, the latter being in the nature of " capital" receipts. The ultimate aim is to distinguish between forest development and subsequent management, but to do this, many problems have still to be solved ; and they will probably remain unsolved until the reorganization of the accounting system has been completed and in operation for several years. When this distinction is made, postdevelopmental management of forests will be financed from Consolidated Fund and only the development work will come under Public Works Account. However, until this can be done, the present framework will ensure that forest finance is on a sound footing, especially as our forest activities are still predominantly developmental. Apart from the question of finance, the estimates show the total cost of staffing and administering the Department, in spite of their being spread over two votes. (2) Departmental Accounts. —Unfortunately, the expenditure for the year could not be recorded under the new system until legislative authority was provided towards end of the 1948 session of Parliament; and this late start, coupled with serious staff difficulties on the accounting side, made it impossible to have the accounts up to date by 31st March, and, in particular, prevented the passage of transfers between the two accounts before the end of the financial year. Appendix XV of this report summarizes the receipts and payments of the Service for the financial year and gives, for comparative purposes, the corresponding figures for each of the four preceding years. Reference to Appendix XV will show that, compared with the previous year, payments increased by approximately £520,000 and receipts increased by £135,000. The predominance of forest-development works mentioned above, and the substantial arrears of silvicultural work, account for the larger increase in expenditure, but, with the approaching maturity of many of our exotic forests, receipts should show a steady increase in future. However, it will be many years before development work is substantially completed and the gap between payments and receipts is materially reduced. Appendix XVII shows in narrative form the revenue accounts and Balance-sheet for the utilization units for 1948-49, the figures for the previous year being shown for comparative purposes. As the Conical Hill Mill is still in course of establishment, no reyenue accounts are shown, expenditure having been capitalized. The 1948-49 accounts are subject to audit, but no material variations are expected as a result of the auditProvision was made in the estimates for the year for the payment of income-tax by the utilization units with the object of placing these units on a basis directly comparable with similar privately-owned concerns. However, conflicting legislative provisions made this impossible, but the same result has been achieved by the method adopted in drawing up the accounts for the Appendix herewith. The complete accounts for the. Forest Service are set out in parliamentary paper B-l [Pt. IV]. It had been hoped to have the accounts for the 1948-49 financial year available for publication with this report, but, although substantial progress has been made in building up a practically new accounting staff and in overcoming the arrears of work, it has not been possible to achieve the desired result this year. Storks (1) Stores Administration. —The growth of the Service in recent years has demonstrated the need for a fully-organized Stores Section specializing in this work. Appointments have now been made to form the nucleus of a stores Section, the stores system has been improved, and a course of instruction for Stores clerks was held during the year to standardize the improved system. (2) Stores Supply. —During the year there has been a steady improvement in the supply position as regards most of the items required by the Forest Service. More stores are readily available from merchants' stocks, and indent deliveries are becoming faster, but shortages still exist in numerous lines. .

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Information (1) Publications. —There is a great need for the Forest Service to resume publishing as actively as before the war. Not the least valuable part of the Forestry Library consists of the research publications of other forestry bodies sent to it on the understanding that the publications of this Service would be sent in exchange, but, except for its annual report, the Forest Service has had little with which to meet its exchange obligations. Within New Zealand, ■ public interest in long-term forest policies is considerable, and if the Forest Service does not go out to meet the public with information, it is liable to be involved in unfortunate controversies, which will be -damaging to its good relations with the public. At the present time it is all too elear that, while the public is well informed about the Forest Service's part in the development of the timber industry and in the planting of the extensive exotic forests, it knows but little of the Service's research activities and operations directed towards the regeneration of the indigenous forests of New Zealand. For these reasons a departmental Publication Committee was set up during 1948 and has since met regularly. Broadly speaking, two series of publications are projected : a research series publishing the results of original research, such as that carried out by the Forest Research Institute ; and an information series which will meet the timber ■industries' need for a flow of up-to-date information on the utilization of timber, and the general public's need for some interpretation of long-term forest policies and reports on forestry operations. A number of bulletins are now being written, and two have been sent to printers—namely, " Accounting in the Timber Industry " and " Forestry in New Zealand." The reprinting of some bulletins which are out of print is under ■consideration, also publication of volume tables for the estimation of standing timber. During the past year the writings of Forest Service officers have appeared in various journals, including the New Zealand National Review, the British Empire _Forestry Review, and the New Zealand Journal of Forestry, which printed two notable papers read to the Pacific Science Congress : C. M. Smith's " Acclimatization versus Domestication of Forest Species," and J. T. Holloway's " Ecological Investigations in the Nothofagus Forests of New Zealand." Newspaper reporters have been encouraged to call on the Forest Service, and a significant outwards flow of information has been maintained. (2) Library.—The Forestry Library in Wellington now holds nearly 2,000 books and some 5,000 bulletins and pamphlets, and it receives regularly more than 100 trade and technical periodicals. The Forest Research Institute in Rotorua also has a fairly large specialist library, and conservancy offices and forest stations hold small collections •of standard works. The central library, of course, serves the whole Forest Service, not only the Wellington office. The task of recataloguing the whole book stock in accordance with modern library practice was completed during the year ; and half the stock of pamphlets was recatalogued. Catalogue cards for all the books in the Library are held in the National Library Service Union catalogue, so that the books are available to all libraries which subscribe to the library interloan system. (3) Motion Pictures. —" Timber Harvest," a documentary film on the sawmilling industry, was commissioned by the Forest Service in 1948 for screening at the Australia - New Zealand Timber and Forestry Conference in April. It aroused a great degree of interest in delegates to the conference, and it was later released for general exhibition by a national theatre circuit, being seen by several hundred thousand people. In a year of record timber production, " Timber Harvest " served as a timely tribute to the industry. The place of films in forestry training was demonstrated during the year by an instructional film purchased from the United States Forest Service and a film commissioned by the New Zealand Forest Service to demonstrate the use of certain equipment in fighting forest fires. Apart from their use in staff-training, these films

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were found useful to demonstrate advances in the technique of controlling forest fires to the annual conference of the United Fire Brigades' Association and other fire-control bodies. (4) Forest Fire Publicity. —Publicity was again used as a weapon against forest fires in the 1948-49 fire season—October to March. It consisted chiefly of display advertising in rural and metropolitan newspapers, backed up with radio broadcast warnings at times of exceptional danger. Other publicity media such as posters and roadside warnings were also used. The Soil Conservation and Rivers Control Council was again associated with the Forest Service's anti-fire publicity, and press co-operated by featuring news stories which quickened the public's interest in the campaign. Such publicity is an economical anti-fire weapon. There is no direct way of measuring its effect on the occurrence of forest fires, but it goes to the root of the matter : forest fires are started by men, whether carelessly or deliberately, not by natural agents. The purpose of the annual fire-prevention campaign is to cultivate a general sense of responsibility in the use of fire in scrub and grass lands bordering forests as well as in forests themselves, and to make it second nature for smokers to stamp out cigarettebutts and pipe ash. It sets out, too, to make every member of the public realize his duty to put out or report any fire endangering a forest. In this it is complementary to the Forest and Rural Fires Act, which gives to all citizens specific duties for the suppression of fires. CHAPTER IX—FOREST ECONOMICS AND TRADE Timber-production (1) Sawn Output.—There has been a spectacular increase in timber-production during each of the past two years. Last year's report placed the total sawn output at 429,000,000 board feet, but when the final scrutiny of all figures was completed after publication of the report a further 4,000,000 board feet was added, making the total for 1947-48 433,000,000 board feet. For the year ended 31st March, 1949, there was an increase of 41,000,000 board feet, and the total cut of all species was 474,000,000 board feet, details by districts and species being given in Appendix VII. These statistics are provisional pending the official collection and publication of sawmilling statistics by the Government Statistician, but they are based on declarations furnished by sawmillers under the Sawmill Registration Regulations and therefore can be accepted as authoritative. Such an increase of 34 per cent, from 354,000,000 board feet in 1946-47 to 474,000,000 board feet in 1948-49 is remarkable. The most significant feature, however, is the shifting of the incidence of production ; of the total increase of 41,000,000 board feet last year, 36,000,000 board feet relates to the North Island and 31,000,000 to the Rotorua Conservancy. The detailed figures in Appendix VII emphasize the dominant importance of the Rotorua region as a source of timber-supplies. With -a total sawn output of 153,000,000 board feet, this region now accounts for about onethird of the national output, and it almost equals the entire output of the South Island. Production in the North Island during the past year was 315,000,000 board feet, and in the South 159,000,000 board feet. Thus, having regard to population and the effective level of demand, production in the two Islands is probably now in a better state of balance then ever before. Shipments of sawn timber from the South Island to the North —so regular a feature of the pre-war years—can now be regarded as virtually a thing of the past.

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Production of insignis pine at 153,000,000 board feet showed an increase of 17,000,000 board feet on the previous year; including other minor species, the total output of exotic timber was 161,000,000 board feet, which is equal to 34 per cent, of all timber sawn, and the highest figure, both relatively and absolutely, yet reached. It is worthy of mention, however, that the production of exotic species is virtually static in all conservancies except Rotorua, and Auckland, still dependent principally on farm woodlots and shelter-belts, shows a small decline- Production of larch at a little over 4,000,000 board feet assumes some significance for the first time. Among the indigenous species there are both increases and decreases. Production of rimu and miro is up by 18,000,000 board feet on the previous year, matai is up by 4,000,000 board feet and totara, by 1,000,000 board feet. Beech, kauri, and whitepine show little change ; and tawa shows a decline of 2,000,000 board feet. However, though total production of indigenous species was more than 20,000,000 board feet above the figure for 1947-48, it is likely that the peak has been reached; and a progressive decline in the output of indigenous timber is expected to commence next year. (2) Sawmills in Operation.—There has been a rather remarkable increase in the last few years in the number of sawmills in operation, the number having risen by 50 per cent, during the past five years to a total of 692 as at the 31st March, 1949, Comparative statistics for the five-year period are as follows :

The increase, incidentally, has been distributed almost uniformly between the North and South Islands, both showing an increase of just over 50 per cent, for the five years. This contrasts rather strangely with the relative increase in timber-production referred to in the preceding , paragraph, and reflects a tendency towards a smaller-capacity mill in the South Island. This in turn is a reflection of the relative weakness of the South Island in timber resources. It is evident that new mills continue to greatly exceed mills cutting out and ceasing operations ; nevertheless, the current high level of almost 700 sawmills must be near the peak, with little likelihood of any further significant increase. Many of the mills, of course, are quite small; some are only part-time ventures which cut very nominal quantities of timber. The average output for all registered mills was only a little over 500,000 board feet. (3) Equipment and Supplies.—The general position has not improved to any significant extent since the previous year. Tractors, trucks, and spare parts are still very difficult to obtain, and many of the tractors at present in use by sawmillers are too old to give satisfactory service in bush operations. Saws, too, have.been in short supply, especially large circular saws and crosscuts. Wire rope also has been difficult to obtain. The high cost of essential supplies is reflected in a recent consignment of tram spikes obtained from Sweden by an operator in Southland, the price being £144 per ton, as compared with £3B for a similar article of English origin in 1938. In some districts power saws are being used to an increasing extent in felling operations. There has also been a further advance in the conversion from steam to Diesel haulers, locomotives, and tractors, and the adoption of electric power in place of steam for driving mill machinery is on the increase.

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Year Ended 31st March, Mills Registered as at 31st March. 1945 1946 1947 1948 1949 452 445 527 608 692

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(4) Man-power.—Statistically there lias been a decided improvement in tlie man-power position during the past two years, as shown by the following comparative figures published by the Department of Labour and Employment for the labour strength of bush sawmills : Men Employed. October, 1946 .. .. .. .. .. 5,280 October, 1947 .. .. .. .. .. 5,800 October, 1948 .. .. .. .. 6,370 This is an increase of 20 per cent., which for a period of only two years can be considered very good. However, it must not be overlooked that production has moved to levels far above all past attainments, and the demand for timber is still keen ; and that is why, despite the statistical improvement, there is still a relative shortage of men. In some districts the position is reported to be satisfactory, but on the whole there is a shortage of experienced men. Units in isolated localities, also those which •can provide only sub-standard accommodation, naturally experience the greatest difficulty in staffing their operations. The sawmill housing scheme is generally acknowledged to have been of great value in attracting and retaining men. In isolated situations where housing of a good standard is already available, sawmillers are endeavouring to improve the position further by providing recreational facilities and other amenities. In certain ■operations working-hours are staggered to enable residents of isolated communities to visit shopping centres without loss of wages. During the past year a considerable number of immigrants were allocated to the sawmilling industry, and, while these men cannot yet be considered skilled personnel from the viewpoint of New Zealand conditions, it is believed that those who remain in the industry will give good service. Unfortunately, a significant proportion clearly •do not intend to stay beyond the expiry of their two-year term. (5) Accommodation.—Good progress has been made with the erection of houses under the Sawmill Housing Scheme, 250 being erected during the year. In addition, •a further 68 were in course of erection at the end of the year. Houses in occupation totalled 312 at 31st March, 1949. Since the inception of this scheme 207 applications, covering 823 houses, have been before the Timber Production Advisory Committee. These applications have been dealt with as follows :

At the close of the year a further 12 applications for 49 houses were under action. The 318 houses already erected under the Housing Scheme were a most welcome help in improving the standard of accommodation in the industry; and by attracting men to the industry, the scheme has proved a very material factor in increasing timberproduction. In addition to receiving assistance from the scheme, some millers have also erected good accommodation on their own account. Assistance from the Sawmill Housing Scheme has been confined to improving •accommodation for married men at mills operating in indigenous forest. The period •during which the scheme was to operate is due to expire on the Ist September, 1949, and with timber-production now at a satisfactory level, and with a substantial number •of houses yet to be erected, an extension of the scheme cannot be supported.

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Committee's Decision. Applications. Houses. (1) State Advances Corporation recommended to 157 661 provide houses (2) Deferred for further consideration 5 12 (3) State Advances Corporation recommended to 45 150 decline application (4) Subsequently withdrawn by applicant 7 18

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Home Timber Trade (1) Supply and Demand. —Production of timber is now in excess of domestic demand, and such difficulties as do exist arise chiefly from the altered incidence of species and grades as compared with the supply in pre-war years. In other words,, though the physical timber-supply is more than sufficient for all requirements, consumers generally are still sensitive to the restricted supply of the better grades on indigenous timber. The shortage is purely one of quality, and it is becoming of less and less significance as the use of exotic species widens. Export markets provide a ready outlet for all surplus timber. After allowing for exports and imports, and disregarding stocks which cannot beaccurately ascertained, the total sawn-timber supply during the year was a little over 460,000,000 board feet, as against approximately 440,000,000 board feet the previous year. Buyers are exercising greater discrimination as regards quality and grades, and merchants' stocks have improved. There are, however, certain local exceptions r Wairarapa, Taranaki, and the Gisborne - East Coast region are deficient in timber asa result of negligible local resources and the relative remoteness of these districts from timber-producing centres. The most satisfactory long-term solution is the establishment of exotic forests and farm woodlots in these areas. In the short-term, however, these districts undoubtedly can improve their position by a better appreciation of the merits of exotic timbers as substitutes for indigenous timber. The demand for the secondary commercial species, tawa and rewarewa, declined during the year, and in some cases applications were received from sawmillers for the exclusion of these species from block timber sales. The prospects for an improvement during the coming year are good now that the industry is conscious of the necessity for treating the sapwood of these timbers against insect attack and decay, and is taking steps to install plants for this purpose. The wider acceptance of exotic species for building purposes has contributed m no small measure to the easing of the supply situation ; and the relaxing of restrictions on the erection of garages and farm buildings has facilitated the disposal of the lower grades both of exotic and indigenous species. The demand for white-pine has altered with the reduction in usage of the wooden butter-box by the Dairy Board, and difficulty has been experienced in disposing of some grades of this species. Consequently, since the year closed control over the use of this species has been abandoned. (2) Timber Prices. —In July the Dominion Federated Sawmillers' Association submitted at a public hearing their application to the Price Tribunal for price increases to cover higher labour costs arising out of the West Coast Timber Workers' award of 12th April, 1948. The association also submitted the results of the conomic survey of the industry conducted in 1947, claiming increases to restore the economic position to that of 1939, to cover increased incidental costs, adequate depreciation, the cost of insurance, and the balance of the amount claimed to cover increased costs arising from the general wage increase of October, 1947, which had not been granted in full by the ■ Tribunal. The Tribunal granted the following increases operative from 11th August, 1948 : (a) Indigenous Timbers :■ — ■

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North Nelson and W pat ("VvQprfi Southland Island. Marlborough. \y tot vUaOI/. and Otago. (Per 100 board feet) s. d. s. d. s. d. s. d. Balance increased wages cost arising from 0 4 0 3 0 3 0 4 award of 1st October, 1947 1 1 Increased wages cost, West Coast award of 12th April, 1948 0 3 0 3 To cover increased incidental costs 0 3 0 3 To restore 1939 profit margin 0 9 0 5 Total 1 4 0 6 1 7 i o

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b) Exotic Timbers. —An increase of-3fd. net was granted throughout the Dominion to cover increased wage costs. The Tribunal decided that price-lists should be amended to remove certain anomalies in sawmillers' lists, approving for this reason a premium of 2s. for 100 board feet on certain sizes and grades of building timbers. It is to be hoped that this premium will <3urb the tendency of some millers to cut timber to large sizes rather than incur the increased cost of cutting to building dimensions in common demand. On the sth January, 1949, a new New Zealand Timber Workers' award came into •operation providing for increased wages and also travelling-time. As from the Bth March, 194:9, the Tribunal granted a price increase of 15*4648 d. per 100 board feet net for indigenous timber produced in the North Island and Southland, and 11*1614 d. for Marlborough and Nelson. An increase of 10-956 d. net was granted for exotic timbers. Prices for white-pine produced in North Auckland have been placed on a basis " ex mill yard." Corresponding increases were granted to timber-merchants, who also in some cases received approval to pass on increased yard costs. The rate of increase in prices has accelerated during the year, and it is to be noted that prices for indigenous timbers increased more than those for exotic timber. This trend is desirable in view of the pending decline in indigenous-timber production, and the desirability that prices should reflect the true relative worth of indigenous and exotic timbers. It is also inevitable if indigenous timbers are to be extracted from the more remote areas. Indeed, to ensure proper utilization, prices for indigenous timbers should be considerably above present levels. (3) Utilization.—Although production of indigenous building timbers again increased substantially, further progress was made during the year in their substitution by insignis pine, larch, white-pine, and tawa. The concentration of carpenter labour on housing led to the building of approximately double the number of dwellings erected annually during the peak pre-war years, and this was largely responsible for the scarcity of rirnu, matai -and totara, and their partial replacement by other timbers. Good progress was made in the use of insignis pine for house framing above groundfloor level, and growing interest was shown in this timber for weatherboarding and flooring. For these latter purposes users generally demanded that the timber be treated with preservatives, but for scantling, although some treated insignis pine was used, the bulk of supply was untreated. The Forest Service lost no opportunity to stress the necessity for adequate precautions in handling and storage if insignis pine is to give satisfactory use without preservative treatment. ' White-pine and tawa when used in first-class housing work were invariably treated with preservatives. In most instances these timbers were used to replace rimu and matai for flooring. It is somewhat anomalous that the greatest use of insignis pine and other woods in substitution for timbers usually used occurred in- towns which had the best supply of rimu and matai. In Taranaki, Wairarapa, and Gisborne, where indigenous building timber is generally in acutely short supply, progress in the use of substitutes has been much less than in Auckland. It is true that none of the districts named possess a single dry kiln or adequate facilities for timber treatment, but failing provision of such services locally it is inevitable that timber-users in those areas will have to rely to an increasing extent upon drying and treating facilities in other provinces. The abnormal housing programme has entailed such an increased usage of timber that other industries have been compelled to seek substitutes for the general-purpose indigenous timbers, particularly rimu. Joiners, cabinetmakers, and furniture-manu-facturers have found it necessary to vary their normal customs of timber usage and to .accommodate their designs and technique to the use of insignis pine to an increasing extent. In these fields good progress was made during the year, and it can now be said that a so id foundation has been laid for the permanent substitution of rimu by insignis pine for a wide range of cabinet work and furniture.

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Overseas Timber Trade (1) Timber Imports. —Total imports were much higher than the figure for the previous year, but this was entirely due to very large shipments of railway sleepers. Of the total inwards timber traffic of 45,000,000 board feet, almost 23,000,000 board feet were sleepers. Sleepers, of course, have been in short supply for some but imports for the past year are the highest since the peak in 1924. The volume of the import tradewas due to a very marked improvement in the shipping position. Sawn timber accounted for only 16,000,000 board feet, as against 20,000,000 board' feet in the previous year ; Douglas fir was very much less, due to the scarcity _of dollarfunds, and cedar also was slightly less. Redwood, on the other hand, showed a significant increase. One of the important developments in the import trade was the reappearance of Japanese oak for the first time since Japan entered the war, the popularity of this timber for furniture-manufacture being such that at 730,000 board feet supply was very much below demand. Total imports at 45,000,000 board feet are the highest since 1930. Long-term import statistics are given in Appendix Y. (2) Timber Inspection.—Evidence of injurious insects entering the country in imported timber, despite inspection at the source of shipment, has shown the need for meticulous care if New Zealand is to be protected from serious depredations by introduced insects. Termites entering the country in poles, sleepers, and other hardwoods imported from Australia have been giving cause for concern, and during the year a Timber Inspection Branch was set up with full responsibility for carrying out control measures at ports of entry. All timber imports are inspected, inspection being carried out both at the ship's side during all hours of unloading and also at nearby holding-yards approved for this purpose. Quarantine yards were established at Auckland and Wellington, and several sites were inspected at Tauranga preparatory to the establishment of a yard at the latter port. At other ports the owners of infested produce have it treated under the supervision of a Timber Inspector. Infested material is treated by two main methods : (a) Creosote treatment as laid down in the basic inspection directive. (b) Pressure treatment with wood preservatives composed of chemicals of proven toxicity. (This treatment has been tentatively approved for large quantities, of infested produce that cannot be handled by a quarantine yard or the staff at present available for this work.) Great care is exercised during the inspections, and a very high degree of immunity from termite infestation is secured. With the present precautions being taken i.e., import inspections by the Forest Service and destruction _of established colonies by the State Advances Corporation and various local bodies —-it is unlikely that there will be any significant increase in the termite menace. It appears that this pest is fairly successfully controlled at present, and the longer these precautions are in forcethe more successful control will become. It is highly improbable that an epidemic situation will result from introduced termites, as conditions over the greater part of New Zealand are against the establishment of the various Australian species. A reduction in the termite colonies that have become established has already been achieved by local bodies as a result of conscientious application of sound control measures. There is no> evidence that termites present a serious threat to New Zealand forests. (3) Timber Exports. —Exports reflected the marked improvement in transTasman shipping position and also the buoyant level of timber-production during the past two years. The total quantity of sawn timber shipped from New Zealand was 23,000,000 board feet, practically all of which went to Australia. This improvement in reciprocal trade has materially assisted this country to secure greater quantities of hardwoods from Australia. The largest single item was sawn insignis pine, 13,500,000 board feet, which was almost treble the previous year's figure. Rimu, matai, beech, and

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white-pine all showed increases, the increase in the last mentioned being a reflection of the difficulty in disposing of the lower grades on the domestic market. However, this increase in the export of indigenous species is purely temporary, for within a year or two export of indigenous timber is expected to be down to an insignificant level. During 1948, exports reached their highest level since 1936, and it is expected that a very important upward movement will develop during the next few years. A graph in the Appendix shows the movement of exports and imports annually since 1885, with exports projected to show the rapid rise in outward shipments which will follow the wider development of the exotic forests. This graph not only shows the high levels reached by the timber export trade in past years, but also shows that within a few years exports are likely to be as much as 50 per cent, above the previous peak year. Exports of exotic timber are inspected both in the mill yard and at the ship's side for the presence of harmful insects, sapstain, and incipient decay, and also to check moisture content and over-all general appearance, including square end docking and freedom from bark. Exports of white-pine are also checked to ensure that only permitted grades are exported. Long-term statistics of exports by species are given in Appendices 111 and IV. Trade Relations (1) Timber Production Advisory Committee. —The Timber Production Advisory Committee was originally constituted under Emergency Regulations, but by the Timber Production Advisory Committee Regulations 1949 the Committee becomes a permanent body with the same functions as under the Emergency Regulations. The Committee held three meetings during the year, the membership remaining unchanged. Among the matters considered by the Committee were immigration, both from Great Britain and of displaced persons, ambulance services in country districts, and problems of transport. The Committee continued to advise the State Advances Corporation concerning the Sawmill Housing Scheme, and assisted with the collection of the sawmill housing levy. (2) Timber Control.—The Timber Control Emergency Regulations 1939 were revoked in December, 1948, and were replaced by the Timber Regulations 1949. With the revocation of the Timber Emergency Regulations, the office of Timber Controller was abolished and control over sales of standing timber was discontinued. Control over the sale of heart and medium kauri, and white-pine, was reimposed by the Timber Regulations 1949. (3) Liaison and Advisory Services. —The principal activities under this heading during the past year were — {a) Investigation of sawmillers' applications for houses under the Sawmill Housing Scheme, and submission of reports to the Timber Production Advisory Committee. (b) Investigations in connection with the rationing of butter and petrol; and furnishing of recommendations to the Oil and Food Controllers. (c) Assistance to the timber industry in regard to items of essential equipment in short supply. (d) Investigations on behalf of the Rehabilitation Department in the case of applications for rehabilitation assistance from ex-servicemen in the sawmilling industrv.

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APPENDIX I Area of State Forests as at 31st March, 1949

66

(With summary for years 1920-48) Conservancy and/or Year. Permanent State Forest. Provisional State Forest. Total Area Under State Forest. Percentage of Total Land Area Under State Forest Reservation. Ordinary. National Endowment. Ordinary. National Endowment. Auckland Rotorua Wellington Nelson Westland Canterbury Southland Totals, 1949 1948 1947 1946 1945 1944 1943 1942 1941 1940 1939 1938 1937 1936 1935 1934 1933 1932 1931 1930 1929 1928 1927 1926 1925 1924 1923 1922 1921 1920 Acres. 443,216 702,210 1,094,190* 1,124,828 923,946 488,223 572,452 Acres. 89,789 286,760 41,135 213,151 355,685 3,647 56,234 Acres. 134,713 180,374 37,615 793,113 364,105 608,108 Acres. 13,719 62,572 3,808 522,217 225,580 13,740 Acres. 681,437 1,231,916 1,176,748 2,653,309 1,869,316 491,870 1,250,534 7-92 15-6 9-72 37-86 48-38 4-94 7-36 5,349,065 5,215,847 5,157,086 5,189,996 5,110,032 5,038,649 4,862,291 4,704,289 4,668,127 4,220,368 4,045,082 3,651,327 3,465,314 3,309,726 3,185,053 2,634,558 2,552,678 2,033,218 2,029,008 1,945,218 1,973,485 1,947,872 1,861,213 1,770,581 1,758,513 1,674,844 1,611,212 1,689,511 1,678,672 1,666,302 1,046,401 1,046,429 1,047,671 1,047,671 1,047,671 1,050,839 1,010,971 1,010,971 1,008,600 817,794 739,337 731,922 727,825 733,967 687,403 391,231 367,328 162,815 97,829 91,029 91,029 2,118,028 2,119,154 2,114,874 2,104,118 2.093.471 2,089,565 2,189,932 2,174,690 2,169,874 2,304,772 2,404,633 2.574.472 2,593,510 2,693,975 2,792,841 3,345,021 3.388.371 3,892,660 3,888,202 3,947,154 3,946,325 5,664,347 5,669,361 5,686,700 5,630,668 5,661,830 5,619,466 5,404,806 5,134,651 3.293.372 841,636 846,115 847,978 847,978 847,989 847,998 889,600 912,219 915,478 1,107,612 1,165,809 1,164,969 1,168,740 1,172,504 1,222,988 1,510,764 1,533,061 1,739,430 1,746,127 1,715,850 1,733,611 9,355,130 9,225,549 9,167,609 9,189,763 9,099,163 9,027,051 8,952,794 8,802,169 8,762,079 8,450,546 8,354,861 8,122,690 7,955,389 7,910,172 7,888,285 7,881,574 7,841,438 7,828,123 7,761,166 7,699,251 7,744,450 7,612,219 7,530,574 7,457,281 7,389,181 7,336,674 7,230,678 7,094,317 6,813,323 4,959,674 . 14-09 13-9 13-81 13-84 13-7 13-6 13-5 13-26 13-20 12-72 12-58 ' 12-24 11-98 11-91 11-88 11-87 11-81 11-79 11-69 11-60 11-6 11-66 11-54 11-38 11-3 11-2 11-06 10-8 10-25 9-40 * Includes 62,274 acres vested in the Wellington City and Suburban Water Supply Board, not previously shown.

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APPENDIX II—Summary of Planting and Silvicultural Operations in State Exotic Forests as at 31st March, 1949. (Areas shown in acres)

67

Year of Gross Area of Forest. Total Net New Area Area Treated During Year. Forest. Commencement. Area Planted. Planted During Year. Low- [ pruned. Highpruned. 1 Thinned. Clearfelled. (1) (2) (3) (4) (5) (6) (7) (8) (9) Mangonui 1944 8,927 3 Waipoua 1925 12,600 4,423 250 383 25 59 Puhipuhi 1904 1,565 1,209 6 Glenbervie 1945 5,075 410 124 Whangapoua 1948 20,000 10 10 Riverhead 1926 11,965 10,592 89 172 573 Tairua 1930 48,500 13,812 195 865 3 234 Kauaeranga 1940 4,000 761 80 86 Maramarua 1928 14,087 12,311 130 7 "65 Rotoehu 1937 38,559 6,034 357 498 2 2 Whakarewarewa .. 1898 10,065 7,782* 43 25 112 239 203 Kaingaroa Tongariro 1901 354,503 267,648* 1,005 533 93 272 264 1937 4,500 2,434 134 Erua 1930 6,648 4,390 63 Karioi . . 1927 25,974 16,922 394 126 Gwavas 1944 8,983 513 378 Ngaumu 1942 6,751 361 260 Golden Downs 1927 49,521 23,940 588 *133 27 Rimu 1922 5,839 3,091 150 Hanmer 1901 10,661 7,691 171 136 Balmoral 1916 24,138 21,141 971 6 Eyrewell 1928 19,268 17,312 1,159 Ashley 1939 6,576 2,476 303 193 Naseby 1900 4,032 3,088 132 58 3 7 Herbert 1948 3,269 5 5 Berwick 1946 7,554 309 153 Allanton t 1,676 Akatore t 3,908 Dusky Tapanui 1898 6,867 4,266 65 889 219 1901 6,086 2,357 3 68 140 67 Beaumont 1927 10,000 6,554 47 3 41 Conical Hills 1903 4,923 4,444 105 5 157 21 5 Pebbly Hills 1930 5,330 4,369 10 491 456 15 Minor Areas 1875-1946 13,216 4,417 565 72 15 Totals, 1948-49 765,566 455,075 4,568 6,729 2,243 1,994 479 1947-48 735,074 449,738 2,819 6,743 1,983 1,245 451 1946-47 721,448 446,923 839 6,556 932 1,055 412 1945-46 712,212 447,494 553 5,340 458 574 234 1944-45 715,109 447,163 1,748 4,673 391 952 276 1943-44 673,157 445,680 1,183 3,887 505 782 145 1942-43 654,966 444,441 1,540 2,265 729 1,468 134 1941-42 664,730 443,281 3,922 4,917 1,486 167 1940-41 663,626 439,804 4,455 9,406 2,518 138 1939-40 657,491 437,110 6,447 1938-39 644,552 430,742 2,711 1937-38 617,568 428,210 1,705 1936-37 592,781 426,163 6,701 1935-36 598,592 419,553 12,090 1934-35 597,151 406,179 12,211 1933-34 596,765 393,998 30,532 1932-33 595,623 363,677 15,958 1931-32 591,012 347,959 '41,009 1930-31 t 307,003 53,752 1929-30 t 246,525 56,600 ' 1928-29 J 196,580 57,420 1927-28 t 133,997 35,106 1926-27 i 98,891 19,924 1925-26 t 78,909 15,964 1924-25 t 62,945 11,120 1923-24 i 51,627 7,207 .1922-23 t 44,646 2,862 1921-22 t 41,868 3,408 1920-21 t 38,460 1,381 :: 1 * Includes regenerated areas not previously shown. t New projects. % Not available.

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APPENDIX III Annual Exports of Sawn Timber From New Zealand, 1885-1948

Notes. —(i) Figures for early years have been adjusted to include items not given in board feet in published statistics ; (ii) details of species not available for 1910 and earlier years. Matai and insignis pine only available for years shown; (iii) some years include small quantities of logs.

68

(Volume of exports in thousands of board feet) Source of Data.— " Trade and Shipping " reports by Census and Statistics Department with provisional figures for years 1945-48 furnished by Customs Department Calendar Year. WhiteItimu. Beech. Matai. Kauri. Insignis Pine. Other Species. Total. pine. Sawn. Oases. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 1948 140 4,040 1,177 2,300 9 13,612 '816 752 22,846 1947 3 1,289 909 762 26 4,575 1,259 ' 33 8,856 1946 50 2,615 650 75 24 1,535 2,582 133 7,951 1945 38 690 927 30 19 575 1,249 560 4,133 1944 206 2,422 994 78 9 63 507 87 4,318 1943 137 2^261 719 31 18 428 731 167 4,539 1942 334 5,412 142 213 50 685 784 37 7,475 1941 835 13,960 1,273 747 55 1,595 1,142 19,073 1940 732 11,808 1,575 490 174 1,578 793 17,407 1939 3,137 6,673 1,258 563 303 1,222 251 13,334 1938 2,021 7,407 2,427 1,829 666 1,263 247 14,594 1937 2,795 8,711 2,076 2,142 639 1,478 188 17,716 1936 14,860 6,095 2,033 2,842 937 . .. 899 77 27,043 1935 22,708 9,010 2,766 627 1,607 82 39,642 1934 22,791 7,151 2,410 679 712 827 34,570 1933 19,533 3,642 1,375 411 692 188 25,841 1932 22,265 2,061 1,475 674 619 198 27,292 1931 14,823 929 740 451 418 190 17,551 1930 19,187 3,501 1,974 1,088 947 26,697 1929 30,492 3,123 • 3,016 2,123 400 39,154 .1928 25,438 4,867 2,246 1,670 817 35,038 1927 27,801 3,842 2,581 2,476 476 37,176 1926 31,768 4,008 2,393 1,987 5,556 45,712 1925 39,748 3,710 2,221 3,239 2,630 51,548 1924 33,376 5,451 1,329 1,946 1,221 43,323 1923 34,898 7,575 1,2^7 3,011 1,343 48,094 1922 35,178 4,697 710 3,018 611 44,213 1921 31,561 7,834 965 2,632 2,856 48,849 1920 50,064 14,745 221 1,179 3,457 69,666 1915 50,789 14,196 142 9,096 2,609 76,832 1910 82,000 1905 75,900 1900 57,800 1895 39,400 1890 43,700 1885 33,600

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APPENDIX IV Annual Exports of Sawn Timber From New Zealand, 1885—1948

69

(Value of exports in pounds) Source of Data.— " Trade and Shipping " reports by Census and Statistics Department, with provisional figures for years 1945-48 furnished by Customs Department. Calendar Year. WhiteRimu. Beech. Matai. Kauri. Insignis Pine. Other Species. Total. pine. Sawn. Cases. (1) ■ (2) (3) (4) (5) (6) . (V) (8) (9) (10) £ £ £ £ | £ £ £ £ £ 1948 3,220 91,310 28,670 56,180 480 283,040 23,480 22,530 508,910 1947 80 22,700 19,500 16,300 1,400 86,000 33,900 1,000 180,880 1946 600 40,800 15,200 5,700 1,100 26,500 73,100 2,100 165,100 1945 1944 1943 1942 1941 530 10,220 16,230 1,070' 870 8,920 32,990 14,900 85,730 2,520 28,410 15,450 590 420 570 10,840 3,970 62,770 1,670 25,500 11,650 940 820 4,940 14,640 12,440 72,600 3,740 61,230 2,340 370 2,300 8,020 16,310 1,350 95,660 8,200 143,830 18,670 2,420 2,480 29,330 15,700 220,630 1940 7,970 110,140 20,560 7,670 6,940 29,340 12,750 195,370 1939 1938 40,470 63,920 15,390 4,790 11,270 18,660 2,200 156,700 25,790 74,000 30,330 5,520 20,770 19,340 2,760 178,510 1937 30,570 84,800 24,570 17,950 21,240 19,750 2,670 201,550 1936 140,320 49,800 20,470 16,620 26,470 10,760 1,230 265,670 1935 214,240 69,820 29,350 22,810 18,050 9,660 1,250 365,180 1934 213,290 51,470 25,410 18,490 .5,620 6,540 320,820 1933 181,030 24,560 12,710 10,660 7,110 1,550 237,620 1932 199,680 14,230 15,210 17,230 5,920 1,740 254,010 1931 1930 1929 136,810 6,860 9,510 12,740 5,100 1,880 172,900 265,930 30,690 26,070 27,950 10,060 360,700 317,990 27,140 39,700 51,040 4,090 439,960 1928 262,390 42,290 29,780 35,700 7,340 377,500 1927 1926 289,980 36,180 37,330 57,090 5,340 425,920 356,860 35,840 33,100 46,320 74,440 546,560 1925 1924 446,300 32,760 28,470 63,620 34,040 605,190 360,200 45,950 17,550 38,620 15,630 477,950 1923 328,700 59,930 16,440 60,270 14,760 480,100 1922 363,670 40,600 10,170 58,730 6,930 480,100 1921 353,460 66,200 12,580 46,420 26,130 504,790 1920 517,470 125,360 2,580 18,920 33,330 697,660 1915 1910 1905 1900 1895 1890 1885 224,510 61,020 970 73,560 I 24,340 384,400 408,160 321,160 233,520 147,520 188,740 157,780 For explanatory notes, see foot of Appendix III.

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APPENDIX V Annual Imports of Timber Into New Zealand, 1885-1948

Notes.—(i) Figures under " Logs and Poles " are not altogether comparable, in that as from the year 1931 desapped and squared poles were included under " Sawn and Hewn" until 1947; (ii) column (5) includes small quantities of species other than Australian hardwoods.

70

Source of Data — (Volume in thousand board feet) Trade and Shipping " reports by Census and Statistics Department, with provisional figures for years 1945-48 furnished by Customs Department Calendar Australian Hardwoods. Douglas Fir. (6) Redwood. (7) Cedar. (8) Oak. (9) Other Species. (10) Total. (11) Year. (1) Sawn. (2) Hewn. (3) Railway Sleepers. (4) Logs and Poles. (5) 1948 4,447 1,451 22,574 4,863 4,816 1,371 2,182 732 2,595 45,031 1947 1,790 1,301 6,376 5,176 13,400 88 3,149 1,897 33,177 1946 5,794 6,836 1,323 7,276 274 201 3 199 21,906 1945 6,434 3,253 97 3,751 2,552 775 16,862 1944 6,369 3,780 103 3,798 1,205 40 15,295 1943 5,674 3,470 632 3,539 1,364 30 14,709 1942 5,470 5,920 1,205 1,151 ' '28 602 14,376 1941 7,889 6,006 1,058 2,123 1,528 41 788 204 19,637 1940 8,175 1,744 938 1,867 961 91 2,217 222 16,215 1939 14,945 15,253 705 5,237 3,788 313 2,512 358 43,111 1938 15,938 11,033 2,108 7,048 3,064 284 2,052 1,451 42,978 1937 11,716 7,069 5,376 6,533 1,718 482 3,518 3,035 39,447 1936 8,805 6,455 4,695 4,221 2,145 153 2,691 2,079 31,244 1935 8,087 11,958 3,375 3,4721,255 149 1,550 1,105 30,951 1934 4,097 3,763 2,493 3,128 752 18 1,655 1,038 16,944 1933 4,096 1,653 1,402 1,338 461 2 1,040 1,920 11,912 1932 2,007 22 854 1,181 292 7 893 1,749 7,005 1931 4,475 2,985 2,252 2,950 1,028 52 157 4,418 18,817 1930 13,615 12,770 7,699 12,807 9,345 637 2,300 12,892 72,065 1929 13,955 3,827 4,342 16,188 11,678 1,335 2,417 8,991 62,734 1928 13,382 5,359 5,109 16,715 7,479 2,065 2,042 8,367 60,518 1927 12,903 5,355 8,140 17,637 7,583 2,390 1,837 5,986 61,831 1926 15,038 1,056 7,331 16,937 8,905 2,425 12,306 64,000 1925 17,951 10,775 15,953 17,116 6,526 2,719 11,036 82,076 1924 12,973 6,777 24,573 13,835 2,052 6,377 66,587 1923 10,059 4,183 14,012 8,081 1,659 2,327 40,321 1922 6,511 19,166 3,975 1,680 31,332 1921 11,244 20,563 12,432 1,629 45,868 1920 9,899 8,773 2,801 7,057 28,530 1915 11,655 10,044 4,576 2,352 28,626 1910 7,751 17,769 25,520 1905 2,926 11,212 14,138 1900 3,461 7,385 10,846 1895 "83 930 2,705 3,718 1890 261 2,825 3,086 1885 2^493 837 2,774 6,104

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APPENDIX VI Annual Imports of Timber Into New Zealand, 1885-1948

71

(Value in pounds) Source of Data.— Trade and Shipping " reports by Census and Statistics Department, with provisiona figures for years 1945-48 furnished by Customs Department. Australian Hardwoods. Calendar Douglas Redwood. Cedar. Oak. Other Total. Year. Sawn. Hewn. Railway Sleepers. Logs and Poles. Fir. Species. (1) (2) (3) (4) (5) (6) 1 (7) («) (9) ' (10) (11) £ £ £ £ £ £ £ £ £ £ 1948 136,800 43,100 412,900 127,000 154,100 62,300 101,800 30,800. 4,100 1,072,900 1947 53,700 25,200 153,100 126,300 440,200 4,400 152,100 97,000 1,052,000 1946 151,940 132,000 33,050 115,200 8,000 9,770 140 9,600 459,700 1945 173,000 69,000 3,000 48,000 75,100 22,200 390,300 1944 151,200 63,100 * 60,000 35,200 3,000 312,500 1943 150,000 58,000 * 52,200 41,000 2,700 303,900 1942 136,600 107,000 * 18,700 *500 43,160 305,960 1941 145,210 99,220 15,700 24,190 35,530 870 21 * 260 12,430 354,410 1940 130,000 24,660 13,030 23,840 21,570 1,790 63,000 790 293,680 1939 232,750 213,020 12,560 41,760 68,650 3,600 53,090 13,410 638,840 1938 241,770 153,170 36,540 53,370 47,500 3,520 42,820 39,970 618,670 1937 167,150 93,210 83,670 53,230 24,760 5,970 66,350 62,910 557,250 1936 122 ,270 80,010 68,610 37,330 28,120 1,920 40,780 45,620 424,660 1935 110,030 141,480 46,760 25,790 15,980 1,810 24,760 18,210 384,820 1934 60,900 45,160 36,220 24,780 8,530 240 29,760 21,970 227,560 1933 53,810 18,540 17,730 8,660 4,660 30 13,650 27,070 144,150 1932 24,960 180 9,900 8,000 4,080 80 13,010 23,410 83,620 1931 60,860 35,080 23,060 13,590 11,320 620 14,980 56,230 215,740 1930 211,230 188,490 103,650 87,760 100,910 7,210 61,680 144,740 905,670 1929 215,880 56,040 62,900 113,840 130,310 13,530 62,420 110,770 765,690 1928 201,130 77,160 79,990 116,850 87,350 20,690 52,590 103,090 738,850 1927 213,480 81,280 125,070 125,680 85,580 24,270 51,630 78,730 785,720 1926 246,800 14,800 105,210 120,460 106,480 63,030 169,670 826,450 1925 307 ,320 180,720 250,190 125,710 81,490 83,750 147,795 1,176,970 1924 229,500 104,820 377,380 122,330 75,510 109,620 1,019,160 1923 169,800 59,160 202,040 77,470 57,390 45,400 611,260 1922 129,460 304,950 33,190 27,680 495,282 1921 229,270 392,680 120,630 42,540 785,120 1920 164,180 173,400 29,950 242,800 610,330 1915 118 ,830 127,780 21,020 99,870 367,500 1910 80,660 146,560 227,220 1905 35,600 80,580 116,180 1900 36,740 57,770 94,510 1895 710 8,580 16,790 26,080 1890 4,530 21,040 25,570 1885 6,510 9,830 21,870 38,210 See footnotes to Appendix V.

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APPENDIX VII Output of Sawn Timber for Year Ended 31st March, 1949

Note. —These are provisional figures pending publication of detailed statistics by the Government Statistician.

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(Quantities given in million board feet) (Based.on statistics collected by the Forest Service in connection with,the annual registration of sawmills) Conservancy. (1) Ilimu and Miro. (2) Matai. | Totara. (3) (4) 1 Whitepine. (5) Beech. (6) Kauri. (7) Tawa. (8) Auckland Rotorua Wellington North Island Nelson Westland Canterbury Southland South Island Total, 1948-49 1947-48 1946-47 31-7 69-2 38-7 8-1 9-Q 12-1 5-7 3-6 4-1 5-5 2-9 2-7 0-3 1-5' 1-6 0-9 7-1 139-6 29-2 13-4 11-1 1-8 1-6 8-0 11-5 49-2 0-5 16-8 0-3 0-2 0-1 0-5 6-2 6-i 1-0 3-7 1-4 3-4 2-2 9 • 3 78-0 1-1 0-3 6-1 14-9 217-6 199-2 172-2 30-3 26-0 19-7 I 13 - 7 12-7 9-6 17-2 16-6 15-1 19-7 16-4 11-6 1-6 1-5 2-3 8-0 10-1 7-6 Conservancy. Insignia Pine. (9) Eucalypts. (10) Larch. (11) Poplar. (12) Other Species. (13) Total. (14) Sawmills Registered at 31st March, 1949. Auckland Rotorua Wellington ' North Island Nelson Westland Canterbury Southland South'Island Total, 1948-49 1947-48 1946-47 25-9 55-6 18-2 0-5 0-6 0-4 3-7 CM 2-5 1-4 1-4 82-4 153-4 79-2 187 90 111 99-7 1-5 3-7 0-1 5-3 315-0 388 11-4 32-1 10-1 1-0 0-1 0-4 6-4 0-3 0-1 0-1 0-9 1-5 27-7 55-6 35-4 40-1 95 67 62 80 53-6 1-1 0-4 0-7 2-6 158-8 304 153-3 136-8 111-6 2-6 1-8 1-2 4-1 * 0-8 1-2 0-9 7-9 10-7 2-2 473-8 433-0 354-0 692 608 527 . * Included in " Other."

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APPENDIX VIII Logging and Sawmilling in New Zealand: Statistical Summary for Period 1921-47

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Year Ended 31st March, (1) Sawmills Reporting. (2) Total Sawn Output. (3) ■ Men Employed (Bush and Mill). (4) Output of Sawn Timber Per Man. (5) Salaries and Wages Paid. (6) Average Earnings Per Man. (7) Stumpage Value. (8) Index of Unit Value of Output. (9) Number. 1,000 Number. Bd. ft. • £ £ £ 1926-30 bd. ft. = 1000. 1921 323 307,668 7,696 39,978 1,731,906 225 * 1,175 1922 321 314,972 6,794 46,360 1,606,139 236 285,316 1,126 1923 347 304,352 7,108 42,818 1,564,900 220 287,217 1,086 1924 357 317,069 7,584 41,808 1,672,275 221 315,981 1,081 1925 369 344,095 7,863 43,761 1,805,042 230 338,366 1,090 1926 374 353,224 7,557 46,741 1,857,718 246 337,588 1,054 1927 343 305,675 6,380 47,911 1,556,756 244 279,258| 1,040 1928 316 269,783 5,618 48,021 1,327,072 236 237,871 977 1929 292 270,214 5,559 48,608 1,262,734 227 224,551 960 1930 305 282,405 5,788 48,792 1,298,475 224 248,794 968 1931 314 229,468 4,978 46,096 1.060,401 213 220,551 928 1932 260 154,193 3,364 45,836 596,442 177 129,522 824 1933 272 166,269 3,593 46,276 594,330 165 125,553 743 1934 322 197,655 4,106 48,138 666,330 161 148,371 743 1935 357 243,782 4,984 48,913 850,391 171 192,544 792 1936 364 293,075 5,692 51,489 1,051,796 185 232,455 846 1937 385 305,889 6,217 49,202 1,307,940 210 270,090 932 1938 394 322,766 6,426 50,228 1,517,312 236 287,385 1,014 1939 ■ 360 316,716 5,988 52,892 1,507,429 252 290,722 1,004 1940 363 335,991 6,363 52,804 1,658,271 261 301,976 1,027 1941 365 342,208 6,288 54,422 1,727,317 275 325,129' 1,040 1942 358 324,474 5,949 54,543 1,726,623 290 350,689 1,081 1943 330 341,515 5,645 60,499 1,882,470 330 346,334 1,140 1944 361 350,748 5,842 60,039 2,003,965 343 368,006 1,176 1945 357 340,133 5,777 58,877 2,055,019 356 384,838 1,207 1946 379 344,723 5,924 58,191 2,261,855 382 404,828 1,384 1947 400 353,955 5,793 61,100 2,408,094 416 419,631 1,504 * Not available. t Prior to 31st March, 1927, these figures include a small amount of rent.

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APPENDIX IX Forest Offences, 1948-49

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Offence. Law Under Which Number of Fines. Costs and Proceedings Were Taken. Convictions. Dam ages. £ s. d. £ s. d. Lighting fire in fire district, Section 44 (1) (c), Forests 6 13 10 0 15 14 2 contrary to provision of Act Act, 1921-22 Unlawful cutting and removal Section 43 (1), Forests Act, 8 37 0 0 1,879 10 8 of forest produce 1921-22 Operating engine without Regulation 6(1), Forest (Fire1 15 0 0 39 2 6 efficient spark-arrester prevention) Regulations 1940, as amended by Amendment No. 1 Failing to report fire in State Regulation 15 (1), Forest 1 1 11 0 forest (Fire-prevention) Regulations 1940, as amended by Amendment No. 1 Unlawful hunting in State Section 47 (a), Forests Act, 2 1 0 0 5 8 0 forest 1921-22 Unlawful occupation of land Section 47 (c), Forests Act, 1 1 0 0 5 15 4 in State forest 1921-22 Lighting fire without lawful Section 44 (1) (a), Forests 5 4 10 0 9 14 6 authority in State forest Act, 1921-22 Leaving fire in State forest Section 44 (1) (b), Forests Act, 2 1 14 6 without taking steps to pre-1921-22 vent it spreading Unlawful entering State forest. Regulation 12 (1), Forest 3 (Fire-prevention) Regulations 1940, as amended by Amendment No. 1 Unlawful hunting in State Section 47 (a), Forests Act 3 forest 1921-22 Allowing dogs to trespass in Regulation 11, State Forest 3 >- 1 10 0 10 3 0 State forest Regulations (Gazette, 15th April, 1909, p. 1031) Unlawfully using dogs for pigRegulation 14, State Forest 3 hunting in State forest Regulations (Gazette, 15th April, 1909, p. 1031) Totals 38 73 10 0 1,968 13 8

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APPENDIX X Training and Recruitment, 1948-49

APPENDIX XI National Forest Survey

The above areas are derived by proportion from the sampling pattern of each unit.

75

Course. | Serial No. 1 Period. Number Attended. Rotorita Forest Training Centre Professional Officer 2 1 week . . 14 Fourth-grade Rangers 3 8 weeks .. 18 Fourth-grade Rangers 4 8 weeks .. 14 Soil Science .. . . . . 4 days 20 Trainee Preliminary . . 5 4 weeks .. 21 Trainee Senior 2 8 weeks .. 18 Timber Inspectors 2 weeks .. 8 Timber Measurers 7 8 weeks . . 15 Clerical Officer 2 3 weeks .. 15 Clerical Officer 3 3 weeks .. 16 Fire Protection 2 2 weeks .. 17 Fire Protection 3 2 weeks .. 18 Tapanui Forest Vocational School Junior Labourers 12 1 2 weeks .. 16 Leading Hand 13 8 weeks .. j 19

Unit. Completed During 1948-49. Total Completed at 31st March, 1949. Number of • Plots. Area. Number of Plots. Area. Acres. Acres. Coromandel 879 140,000 1,484 236,000 Rotorua 15 2,000 1,087 328,000 Te Whaiti 438 67,000 West Taupo 1,222 278,000 East Coast 58 13,000 58 13,000 Taranaki .. 139 22,000 139 22,000 Westland . . . . 878 140,000 1,322 211,000 Woodlaw . . . . 255 6,000 345 8,000 West Waiau 461 147,000 1,001 322,000 Longwood 310 80,000 Waikaia .. 130 130,000 2,685 470,000 7,536 1,695,000

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APPENDIX XII Forest and Rural Fires Act, 1947: Constitution of Rural Fire Districts as at 31st March, 1949

76

Name and Conservancy. Area. County. Fire Authority. Property Protected. Closed Fire Season. Gazette Reference. Acres. Auckland Forest Conservancy Riverhead 20,900 Waitemata Commissioner of State Trees and other plants on State 1st October to No. 50, 1948, Forests . Forests 30th April p. 1171. Herekino 23,000 Mangonui Ditto Ditto Ditto No. 59, 1948, p. 1394. Hunua ' 83,000 Manukau and Franklin Auckland City Council Lands vested in Auckland City 99 No. 59, 1948, Council p. 1395. Waitakere 57,200 Waitemata " Ditto 99 * * No. 59, 1948, p. 1394. Waiuku 4,600 Franklin Commissioner of State Trees and other plants and sand99 No. 59, 1948, Forests dune areas p. 1393. Warawara 25,700 Hokianga Ditto Trees and other plants on State 99 • | No. 59, 1948, Forests p. 1395. Woodhill-Helensville 20,800 Waitemata Trees and other plants and sanddune areas 99 » • No. 59, 1948, p. 1394. Maramarua 28,000 Waikato and Hauraki Plains „ Trees and other plants on State forests 99 • * No. 60, 1948, p. 1422. Puhipuhi 5,800 Whangarei 99 . . Ditto 99 • • No. 60, 1948, p. 1422. Waitangi 14,000 Bay of Islands 9 9 * * * \ Lands vested in Waitangi Na99 • • No. 60, 1948, tional Trust Board and land p. 1423. held by the Crown under the name of Waitangi Endowment Great Barrier 27,300 Great Barrier 99 • • * * Trees and other plants on State forests 99 * ' No. 62, 1948, p. 1483. Omahuta-Puketi .. 71,000 Hokianga, Whangaroa, and Bay of Islands 99 Ditto 99 • * No. 62, 1948, p. 1482. Waipoua 62,500 Hokianga and Hobson 9 9 ' • • * ,, 99 • • No. 62, 1948, p. 1483. Tairua 63,800 Thames 99 • • ,, 9/ No. 67, 1948, p. 1598. Trounson Kauri Park 4,450 Hobson » • • • • Trees and other plants on TrounNo. 10, 1949, son Kauri Park p. 615. Hauraki Plains 77,000 Hauraki Plains and 99 • • • • Trees, flax, and other plants and No. 10, 1949, Piako peat lands p. 616. Kaitaia 130,000 Mangonui Gum lands, peat lands, and sandNo. 17, 1949, dune areas p. 723.

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Manuwao ' 930 Waitemata Manuwao Rural Fire ' Lands owned by a syndicate forNo. 22, 1949, Committee (3 memmerly known as the Manuwao p. 848. bers) Afforestation Society, Inc. Pureora 300,000 Otorohanga, Waitomo, Commissioner of State Trees and other plants on State "* No. 31, 1949, Taumarunui and Forests Forests p. 1213. Taupo Rotorua Forest Conservancy Kaingaroa 567,000 Taupo, Rotorua, and Commissioner of State Trees and other plants on State 1st October, to ' No. 38, 1948, Whakatane Forests Forests 30th April p. 815. Rotoehu .. 38,700 Tauranga, Rotorua, Ditto Ditto Ditto No. 38, 1948, and Whakatane p. 815. Whakarewarewa 31,000 Rotorua •• • • „ p No. 38, 1948, Whirinaki 129,700 Whakatane and Taupo 99 p. olO. No. 38, 1948, Q1 A Oraka 16,500 Matamata Oraka Rural Fire ComLands owned by N.Z. Forest Prop. Ol4. No. 59, 1948, mittee (3 members) ducts, Ltd., and Redwood p. 1397. Forests, Ltd. Tahorakuri 55,000 Taupo N.Z. Forest Products, Lands owned by 1ST.Z. Forest No. 59, 1948, Ltd. Products, Ltd. p. 1395. Tokoroa 316,000 Matamata, Rotorua, Tokoroa Rural Fire Lands owned by N.Z. Forest 99 • • No. 59, 1948, Otorohanga, and Committee (9 memProducts, Ltd., and 11 others p. 1398. Taupo bers) Matahina 52,700 Whakatane. . Matahina Rural Fire Lands owned by Whakatane 99 No. 25, 1949, Committee (5 memBoard Mills, Ltd., and 2 others p. 935. bers) Wellington Forest Conservancy Korokoro 2,500 Makara and Hutt Petone Borough Council Lands vested in Petone Borough 1st November to No. 50, 1948, Council 30th April p. 1171. Hutt 155,000 Hutt and Featherston Wellington City and Lands owned by or vested in Ditto No. 62, 1948, Suburban Water Wellington City Council p. 1481. Supply Board Tongariro.. 434,000 Kaitieke, Waimarino, Commissioner of State Trees and other plants on State 1st October to No. 64, 1948, Taumarunui and Forests Forests and Tongariro National 30th April p. 1510. Taupo Park Tuwharetoa 235,000 Taumarunui and Tuwharetoa Rural Fire Trees and other plants on MaoriDitto No. 24, 1949, Taupo Committee (9 memowned and Crown land p. 905. Gwavas .. 13,600 Hawkes Bay and Waibers) Commissioner of State Trees and other plants on State No. 27, 1949, pawa Forests forests p. 983.

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APPENDIX XII— continue d Forest and Rural Fires Act, 1947: Constitution of Rural Fire Districts as at 31st March, 1949— continued

78

Name and Conservancy. Area. County. Fire Authority. * Property Protected. Closed Fire Season. Gazette Reference. Acres. Nelson Forest Conservancy Cobb River 44,000 Takaka Commissioner of State | Trees and other plants on State 1st November to No. 62, 1948, Golden Downs Forests forests 30th April p.'1481. 50,500 Waimea Ditto Ditto Ditto No. 64, 1948, Maitai-Roding p. 1510. 26,000 » Nelson City Council . . Lands owned by or vested in No. 17, 1949, Miner River Nelson City Council p. 722. 11,500 ,, Commissioner of State Trees and other plants on State „ No. 17, 1949, Forests forests p. 724. Rabbit Island 3,130 JJ Waimea County Council Land owned by or vested in ?? . . No. 17, 1949, Rai-Pelorous Waimea County Council p. 724. 174,500 Waimea, Marlborough, Commissioner of State Trees and other plants on State No. 67, 1948, and Sounds Forests forests p. 1599. Tawhai 37,000 Inangahua .. Ditto Ditto „ No. 27, 1949, „ fiQO Westland Forest Conservancy p. 98d. Rimu 17,000 Westland Commissioner of State 1 Trees and other plants on State 1st August to No. 50, 1948, Forests forests 30th April p. 1171. Granville 32,300 Grey Ditto 1 Ditto Ditto No. 56, 1948, p. 1319. Canterbury Forest Conservancy Ashley 20,600 Ashley and Kowhai . . Commissioner of State Trees and other plants on State forests 1st October to No. 60, 1948, Forests 30th April p. 1421. Hanmer 20,000 Amuri Ditto Ditto Ditto No. 60, 1948 Balmoral p. 1422. 50,400 Amuri and Waipara .. » ,, .. No. 62, 1948, p. 1483. Eyrewell 52,400 Oxford and Eyre „ ,, ■ ... ,, No. 62, 1948, . p. 1482. Mount Fyffe 13,000 Kaikoura ,, ,, ... No. 67, 1948, p. 1599. Waimakariri 53,000 Oxford, Eyre, Malvern, North Canterbury Lands vested in the North » No. 11, 1949, Paparua, and Wai•m Q *1T»1 Catchment Board Canterbury Catchment Board p. 622. Ohaneys 4,450 llLdilL 1 Waimairi . . Christchurch City Trees and other plants on lands No. 8, 1949, Council situated within the said area p. 572. Bottle Lake 4,900 „ Ditto Ditto ,, No. 17, 1949 p. 724.

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Southland Forest Conservancy Dusky 12,850 Tuapeka and Clutha Commissioner of State Trees and other plants on State 1st August to No. 47, 1948, Forests forests 30th April p. 1099. Pebbly Hills 9,950 Southland Ditto Ditto Ditto No. 50, 1948, p. 1170. Berwick 18,000* Bruce » 99 99 No. 59, 1948, p. 1396. Blue Mountains 85,000 Tuapeka and Clutha .. '» 99 99 • • No. 59, 1948, p. 1396. Naseby 15,100 Maniototo ff . . . • . . 99 No. 59, 1948, p. 1396. Monowai-Lillburn .. 119,000 Wallace 99 * • • • 99 9 9 No. 64, 1948, p. 1511. Pukerau 3,000 Clutha 99 • • • • 99 99 No. 64, 1948, p. 1511. Longwood 150,000 Wallace 5) . . .i . . 9 9 No. 65, 1948, p. 1531. Tautuku 4,500 Clutha 99 99 99 No. 65, 1948, p. 1531. MacLennon 105,000 » 5) • • • • • • 99 No. 67, 1948, p. 1599. Waikawa 15,400 Southland 99 * • • 99 99 • • No. 8, 1948, p. 572. Dunedin 23,000 Taieri and Waikouaiti Dunedin City Council Lands vested in Dunedin City 9 9 ' * No. 17, 1948, Seaward Bush and Dunedin City Council p. 723. 1,850 Southland Invercargill City Council Lands vested in Invercargill City Council " No. 17, 1948, p. 724.

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APPENDIX XIII State Forest Service Logging Operations: Total Production From All Operations

APPENDIX XIV Forest Service Sawmilling Operations: Output and Disposal of Sawn Timber, 1945-49

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(All quantities in. cubic feet) Year Ended 31st March, 1949. 1947-48 Forest. Logs. Other Total. Total. Produce. Omahuta 245,000 245,000 129,000 Pureora 1,017,000 1,017,000 705,000 Whakarewarewa 1,638,000 267 j 000 1,905,000 1,896,000 Kairigaroa 2,093,000 174,000 2,267,000 1,594,000 Whirinaki 1,443,000 2,000 1,445,000 870,000 Balmoral 48,000 115,000 163,000 107,000 -Hanmer 66,000 66,000 36,000 • Eyrewell .. .. ijooo 117,000 121,000 136,000 Naseby 22,000 14,000 36,000 16,000 Pebbly Hills .. ' 8,000 8,000 Dusky 136,000 4^000 140,000 154,000 Tapanui 68,000 1,000 69,000 44,000 Conical Hill 64,000 45,000 109,000 82,000 Other 3,000 9,000 12,000 49,000 Totals 6,789,000 814,000 .7,603,000 5,818,000

Details. Year Ending 31st March, 1949. 1948. 1947. 1946. 1945. Sawn output — For green sales For air seasoning For kiln drying 8,337,000 3,456,000 11,038,000 5,628,000 2,670,000 9,577,000 5,846,000 3,167,000 7,126,000 . 3,917,000 2,486,000 7,355,000 3,629,000 3,366,000 5,444,000 Total 22,831,000 17,875,000 16,139,000 13,758,000 12,439,000 Kiln drying— Quantity dried Percentage of total cut Sales — Within New Zealand — Green .. .. * .. Air seasoned Kiln dried 11,880,000 52 7,913,000 229,000 1,668,000 9,773,000 55 4,156,000 209,000 1,212,000 8,246,000 51 5,398,000 1,271,000 234,000 7,827,000 57 3,851,000 135,000 445,000 5,683,000 46 2,702,000 35,000 249,000 Total 9,810,000 5,577,000 6,903,000 4,431,000 2,986,000 Percentage of total cut Exports— Green Air seasoned Kiln dried 43 62,000 25,000 3,242,000 31 630,000 69,000 841,000 43 26j 000 885,000 32 537,000 24 63 j 000 Total .. .. ... 3,329,000 1,540,000 911,000 537,000 63,000 Percentage of total cut 15 9 6 4 1

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APPENDIX XV Payments and Receipts for the Year Ended 31st March, 1949, and for Preceding Four Years

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Item. 1948-49. 1947-48. 1946-47. 1945-46. 1944-45. Payments £ £ £ £ £ Allocation of revenue— Consolidated Fund (portion of * 16,023 14,235 16,196 revenue from national-endow-ment forests) Working Railways Account (sec- * 4,329 3,539 tion 24 (1), Finance Act, 1936) Local, bodies .. 29,219 21,078 25,750 17,114 12,799 General management charges— 187,714 Salaries 283,869 225,047 137,984 110,317 General expenses 168,373 144,973 130,770 102,275 56,019 Land purchase 34,188 11,640 18,296 30,098 38,957 Forestry projects under development and management— Exotic 1,039,630 811,495 710,376 377,910 346,743 Indigenous 157,503 135,698 79,023 58,808 41,912 Utilization : Sawmill, creosote plant, Q rrt 500,694 318,826 174,379 133,677 125,931 OEC. Pulp and paper making investiga23,670 25,023 12,369 tions, tests, and trials Totals 2,237,146 1,714,132 1,342,216 872,101 748,874 Receipts Indigenous forests receipts— Sales of standing timber 194,934 212,454 155,208 135,913 121,603 Timber royalties and trespass 27,382 14,585 11,481 13,451 9,250 Leases, grazing 2,822 2,083 2,229 2,865 1,611 Sawmill sites, industrial, &c. 381 378 359 672 308 Miscellaneous 20,247 16,526 16,419 8,960 9,124 Log sales from managed forests 129,983 84,864 62,432 67,053 54,716 Exotic forests: Poles, posts, fire57,544 52,525 39,975 38,643 45,938 wood, &c. Utilization projects— Sawn timber 214,366 109,716 98,703 63,451 22,529 Creosoted products 11,677 7,216 17,889 17,305 45,918 Box-shooks 187,212 207,192 134,839 182,187 129,126 Miscellaneous 16,168 23,072 12,840 9,532 9,875 Miscellaneous credits 35,960 32,665 37,953 48,292 10,802 Totals .. 898,676 763,276 590,327 588,324 460,800 ■* These items have ceased from 1st April, 1947, with the change-over to the new accounting procedure

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TREND OF NEW ZEALAND'S OVERSEAS TRADE IN TIMBER 5-YEARLY MOVING AVERAGE OF EXPORTS AND IMPORTS, WITH EXPORTS PROJECTED TO SHOW INCREASE PLANNED FOR NEXT DECADE

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APPENDIX XVII Utilization Branch —Rotorua Conservancy: Statement op Operating Accounts for the Year Ended 31st March, 1949 (Showing Also Figures for tihe Previous Year) Note. —The accounts for the year ended 31st March,. 1949, have not yet been audited by the Controller and Auditor-General, but little if any alteration is likely as a result of audit. Waipa Sawmill Operating Account 1947-48. 1948-49. £ £ Income £ £ The net receipts from the sales of sawn timber after allowing for . selling and transport expenses and for the housing levy included 94,938 as a surcharge in selling prices totalled .. .. .. 143,900 The value of transfers of sawn timber to the box-factory and to . " capital and maintenance works in connection with the plant 136,091 was .. .. .. .. .. .. 112,628 In addition to making the above sales and transfers, the stocks 4,875 of sawn timber were increased during the year by .. .. 8,173 The total income derived from sawn timber produced during the 235,904 year was therefore .. .. .. .. .. 264,701 Expenses, 102,257 The cost of logs sawn during the year was .. .. .. 109,753 Wages and salaries and allowances for compensation and holiday 49,418 pay totalled .. .. .. .. .. .. 57,660 Other expenses of production (including power steam and fuel disposal; maintenance and depreciation of mill buildings, plant and equipment; and office and general expenses) 61,459 totalled .. .. .. .. .. .. 78,059 213,134 The total expenses incurred in production were .. .. 245,472 Deducting the expenses from the income, gives a net profit for £22,770 the year of .. .. .. .. .. .. £19,229 The disposition of the net profit is shown in the Profit and Loss and Appropriation Accounts. Kaingaroa Sawmill Operating Account £ £ Income £ £ The net receipts from sales of sawn timber after allowing for selling and transport expenses and for the housing levy included 8,748 as a surcharge in selling prices totalled .. .. .. 46,024 The value of sawn timber transferred for use in other sections of 554 the plant was . . .. .. .. .. 7,044 In addition to the above sales and transfers, the value of stocks 3,529 on hand was increased during the year by .. .. 1,939 The total income derived from sawn timber produced during the — 12,831 year was therefore .. .. .. .. .. = 55,007 Expenses The cost of logs sawn during the year was .. .. .. 24,976 Wages and salaries and allowances for compensation and holiday pay totalled .. .. .. .. .. .. 11,678 Other expenses of production (including power and waste disposal; maintenance and depreciation of mill buildings, plant, and equipment; and office and general expenses) amounted to .. .. .. .. .. .. 14,769 13,053 The total expenses incurred in production were .. .. 51,423 Deducting the expenses from the income gives a net profit for (Loss) £222 the year of .. .. .. .. .. .. £3,584 Note.—As this mill was not operating as a going concern for the 1947-48 year, detailed expense accounts were not kept. For the same reason, the loss for that year was added to Establishment Account and thus capitalized. The disposition of the net profit for 1948-49 is shown in the Profit and Loss and Appropriation Accounts,

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APPENDIX XVll—continued Utilization Branch—Rotorua Conservancy : Statement op Operating Accounts for the Year Ended 31st March, 1949 (Showing Also Figures for the Previous Year) —continued Waipa Box-factory Operating Account £ £ Income. £ £ The net receipts from sales of box-shook for the year after 200,150 allowing for selling and transport expenses were .. .. 171,138 Transfers of processed timber for use in capital and maintenance 776 work. &c., were valued at .. .. .. .. 1,183 200,926 172,321 2,574 (increase) During the year stocks on hand were reduced to the extent of .. 707 The net income derived from production during the year was 203,500 therefore .. .. .. .. .. .. 171,614 Expenses 129,269 The cost of sawn timber used in production was .. .. 109,774 Wages and salaries and allowances for compensation and holiday 24,549 pay totalled .. .. .. . . .. 22,537 Other expenses of production (including power, steam, and waste disposal; maintenance and depreciation of factory buildings, plant, and equipment; and office and general expenses) 21,931 amount to .. .. .. .. .. .. 19,701 175,749 The total expenses incurred in production were .. .. 152,012 Deducting the expenses from the income gives a net profit for £27,751 the year of .. .. .. .. .. .. £19,602 * The disposition of the net profit is shown in the Profit and Loss and Appropriation Accounts. Waipa Wood-preservation Plant Operating Account £ £ Income £ £ The net receipts from the sales of treated produce after allowing 5,201 for transport and selling expenses totalled .. .. 32,915 1,471 Transfers of treated produce were charged out at .. .. 2,158 6,672 35,073 In the course of making the above sales and transfers the value 1,421 (increase) of stocks of treated produce on hand were reduced by .. 3,466 The net income attributable to treatment operations for the 8,093 year was therefore .. .. .. .. .. 31,607 Expenses 1,724 The cost of untreated produce treated during the year was .. 7,876 To this must be added seasoning-yard costs, which were— Wages and salaries and allowances for compensation and 1,031 holiday pay .. .. .. .. •• 3,542 Other expenses, including maintenance and office and general 365 expenses .. .. .. .. .. ■. 1,358 Thus the total cost of operating the seasoning-yard and providing 3,120 seasoned produce for the treatment plant was .. .. 12,776 The expenses of operating the treatment plant were— Wages and salaries and allowances for compensation and 706 • holiday pay .. .. .. .. .. 2,146 2,231 Creosote and other preservatives used .. .. .. 6,717 Other expenses, including power and steam, maintenance* 3,867 and office and general expenses .. .. .. 5,855 9,924 The total expenses for the year were therefore .. .. 27,494 Deducting the expenses from the income gives a net profit for (Loss) £1,831 the year's operations of .. .. .. .. £4,113 The disposition of the net profit is shown in the Profit and Loss and Appropriation Accounts,

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APPENDIX XVll—continued Utilization Branch—Rotorua Conservancy: Statement op Operating Accounts for the Year Ended 31st March, 1949 (Showing Also Figures por the Previous Year) —continued Profit and Loss and Appropriation Accounts 1947-48. 1948-49. £ £ The net profits of the individual unite as shown in the Operating £ £ Accounts above were—--22,770 Waipa Sawmill .. .. .. .. .. 19,229 Kaingaroa Sawmill .. .. .. .. .. 3,584 27,751 Waipa Box-factory .. .. .. .. .. 19,602 1,831 (loss) Waipa Wood-preservation Plant .. .. .. 4,113 48,690 This gives a profit over all for the year of .. .. .. 46,528 Against this profit has been made a charge for interest on the 13,728 capital employed in the undertaking of .. .. .. 19,265 34,962 Leaving a net surplus for the year of .. .. .. 27,263 The net profits brought forward from operations in previous years (after a total of £116,715 had been charged for interest) 42,711 were .. .. .. .. .. 77,673 Thus giving a net profit since the inception of operations (after £77,673 charging of £135,980 for interest) of .. .. .. £104,936 Note. —Assuming the undertaking to have been operated by a company working on 60 per cent, of share capital and 40 per cent, of loan capital, the appropriation of the over-all profit for the year would have been—--5,760 Interest on loans .. .. .. .. .. 5,760 24,685 Income-tax .. .. .. .. .. .. 23,360 (8-4 per 18,245 Available for dividend .. .. ~ .. .. (8-1 per 17,408 cent.) cent.) £48,690 £46,528

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APPENDIX XVll—continued Utilization Branch—Rotorua Conservancy : Statement of Operating Accounts for the Year Ended 31st March, 1949 (Showing Also Figures for the Previous Year) —continued Balance-sheet as at 31st March, 1949 31st March, 1948. 31st March, 1949. £ £ Current assets were as follows: —- ' £ £ Sundry debtors — 53,006 Trading accounts .. .. .. .. .. 70,811 9,323 Other departmental undertakings .. .. .. 19,858 62,329 90,669 Stocks and stores on hand—--2,027 Logs .. .. .. •• •• •• 2,498 47,320 Sawn timber .. .. .. .. .. 57,433 .12,415 Box-shook .. .. .. .. .. •• 11,708 7,358 Treated produce .. .. .. .. .. 3,892 6,294 Untreated produce .. .. .. .. .. 18,528 2,874 Creosote .. .. .. .. .. .. 1,539 72,523 General stores .. .. .. .. .. 54,051 150,811 149,649 213,140 240,318 Current liabilities were—--27,159 Sundry creditors .. .. .. -• 40,802 185,981 The working capital involved in the undertaking was therefore 199,516 The fixed assets, after making full allowance for normal depreciation, were valued as follows- — . 185,719 Plant .. .. .. .. •• •• 209,404 Less reserves for abnormal depreciation and maintenance of general plant and for renewals and maintenance of 15,709 motor-vehicles .. .. .. 18,506 170,010 190,898 135,477 Buildings .. .. .. .. •• •• 177,129 9,098 Tools, furniture, fittings, &c. .. * .. .. .. 10,662 47,133 Other installations .. .. .. .. .. 65,774 17,996 Other costs of establishment which were capitalized .. 15,811 379,714 460,274 565,695 659,790 Reserves which have been built up against the values of assets 14,665 shown above in respect of possible losses by fire amount to .. 18,569 £551,030 The net amount invested in the undertaking is therefore .. £641,221 The net amount invested as shown above has been provided — 473,357 By interest-bearing advances of .. .. •• 536,285 By accumulated profits as shown in the Appropriation \ 77,673 Account .. .. .. .. .. •• 104,936 £551,030 £641,221

Approximate Cost of Paper.—Preparation, not given ; printing 2724 copies), £2OO.

By Authority: R. E, Owen, Government Printer, Wellington.—1949,

Price, Is. 9d,

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