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Auckland Land District. The timber industry has been brisk throughout the year, and the demand for kauri has been fully equal to, if not greater than, the supply. Mills with adequate supplies were employed to their utmost capacity, but the growing scarcity and attendant delay in delivering logs renders it impossible for other mills to keep running up to their full power continuously. Large mills originally erected for the sole purpose and utilised exclusively for years for the production of kauri timber are now either partly engaged in cutting mixed timbers (kahikatea and rimu, &c.) or making arrangements to do so. This will prolong the life of such mills, and also tend to extend the time for converting the remaining kauri. The most notable feature during the year is the increasing use locally of timber other than kauri for general purposes —viz., rimu, totara, matai, kahikatea, 4c, supplies of which are obtained coastwise and delivered in logs by scows, the remainder is mostly produced sawn from mills situated from 50 to 108 miles smith of the city and delivered by railway, also the introduction into Auckland (the home of kauri) of one ortwo shipments or part cargoes of Oregon pine (this timber for some purposes is a good substitute for kauri), and owing to the greater remoteness and scarcity of the latter, also the increasing difficulty of obtaining adequate supplies of suitable native-grown timber to meet local requirements, regular importations of Oregon or other pine in increasing quantities must be looked for in the future. Timber-measurers have been fully employed in preparing timber for sale, thus meeting as far ac possible the requirements of sawmillers, who generally make applications for Crown forests or clumps, also remnants or remaining timber in the locality of or adjoining their present bush workings or timber-getting operations. - It is proposed to detail off early this year three parties of two each for measuring timber on the Motatau Block for the Maori Land Board of the Tokerau District. High prices were realised for the kauri timber offered for sale by public tender during the year, and record prices obtained for three "f the lots disposed of in March—viz., 3s. IOJd. for one lot, and 4s. Ojd. pel' 100 superficial feet for two lots. It is not expected these values will be maintained in the near future, as the former lot was good handy timber, and the successful tenderer for the latter lots was able to utilise his dead-work—roads, dams, booms, &c. —in connection with adjoining sections and other workings in the locality. Various kinds of timber, aggregating 55,614,536 superficial feet, as under, were disposed of during the year; value, £44,875. Royalty received, £41,604, being an increase of £6,975 over previous years.

Export of Timber, December, 1900, to December, 1907.—From Kaipara, 32,616,266 superficial feet, value £128,487; from Auckland and other ports, 30,400,512 superficial feet, value £147,923 : totals, 63,016,778 superficial feet, value £276,410, being a decrease in quantity of 5,271,940 superficial feet and £1 in value as compared with similar periods for previous year. (The disparity between quantity and values is owing to the increased price of kauri.) Of the total exports it is estimated that about 45,000,000 ft. is kauri, and the remainder mostly kahikatea. Timber-floatage. —Forty-six new licenses were issued and thirty-three renewals were granted during the year. In the past many timber-dealers, sawmillers, and others engaged in the timber industry neglected to take out licenses. This neglect also extended to lack of control of the logs after they were placed in the water—so much so that in some cases they were allowed to drift about or sink—if the former, to be picked up at the convenience of the owners, rafters, or otliers ; if the latter, to have the ownership or liability disclaimed —until the abuse became so grave and complaints so numerous of the damage sustained or impending by local bodies and others, whilst there was a continuous danger to small craft, launches, boats, dec, besides difficulty and delay experienced bysettlers in reaching their homes owing to sunken and derelict logs and other obstructions impeding navigation, that the Marine authorities found it expedient to cause sunken logs to be recovered at the expense of the owners, and this Department took action against all known offenders, as the abuse became acute, owing to the increasing quantity of kahikatea, rimu, and other timbers (less buoyant that kauri) being utilised for milling purposes rendering such action necessary. Bush-fires. —Owing to the unusually dry summer, bush-fires covering Large areas were prevalent throughout the province. With the exception of two small reserves, the undisposed-of portions of Crown forest containing kauri escaped injury, although the fires approached the boundaries of Omahutu, Puketi, and Waipoua State Forests. In a few instances fires passed over old kauri workings and other areas containing mixed timbers, scorching the standing trees. On the whole the loss sustained by the Crown through the fires in Crown forests this year is inappreciable. On the other

Kauri. Rimu. Kahikatea. Totara. Matai. Clou's i Total. Value. Royalty received. Irowri lands itate forests Sup. ft. Sup. ft. Sup. ft. Sup. ft. 8up. ft. Sup. ft. •• 30,589,8955,609,3955,193,0881,224,101 10,94316,439 42 •• 10,207,472 2,127,783 380,081 248,465 6,874: .. 12 Sup. ft. Sup. ft 10,94316,439 6,874: .. Sup. ft. 42,643,861 12,970,675 Sup. ft. 2,643,86! 2,970,67; »1 29 ■515 £ s. d. 29,826 6 8 15,049 1 9 £ s. c ),826 6 i,049 I d. £ s. d. 827,370 3 2 914,234 14 2 40,797,367 7,937,178 5,573,169 1,472,566 17,817 16,439 55,614,536 44,875 8 5 41,604 17 4 In addition to the above, the following timber was measured and disposed of for the Education Department. Eduoation reserves 1,103,009 7,603 14,112 16,012 1,888 .. 1,142,624 1,176 14 1