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The number of trees transferred to the plantation during the year was 635,180, valued at £1,444 10s. Various improvements have been carried out during the year; the formation of shelter-breaks around the nursery-boundary being completed, and a number of ornamental trees and shrubs planted on several small areas of spare land throughout the nursery. During the summer an area of 8 acres adjoining the nursery was cleared of scrub and other growth, and parti)- broken up and graded for the purpose of forming extension to lining-out ground. To give access to this area about 15 chains of road was formed through a swamp, and a considerable amount of labour was necessary in draining and forming culverts to carry away surface water during winter. Aβ the water-supply obtained from a spring in the nursery was found quite inadequate, about 80 chains of galvanised pipe (2 in. to 1J in.) was laid from the high-pressure system at Hanmer Township to the Nursery, and a plentiful supply of good water obtained, with sufficient pressure for all nursery purposes. Twenty acres of land adjoining the stable was ploughed and cultivated for the purpose of forming a paddock for the horses, and during October about 12 acres of this was sown in glasses and clover, with very favourable results, considering the dry season. For the purpose of forming shelter for horse-paddocks, some 4,000 Finns muricata were planted in three rows on the exposed sides of paddocks, with good results, only a small percentage of failures having occurred. A portion of the fencing required to enclose paddocks was erected by prison labour, and the whole will be enclosed as soon as posts can be procured. It was found necessary to provide additional accommodation for horses, and to meet requirements the erection of a five-stall stable was commenced during March. When this building is completed, the old stable will be utilised for the storage of horse-feed and implements. The average number of hands employed daily throughout the year was five men and two boys. About 9 tons of oat-sheaf was grown during the year : this was cut into chaff during March, the value of same being £45. The crop of carrots and swedes grown for horse-feed was fairly good, the estimated yield being about 4 tons. Schedules are appended of trees in stock and sent out during the year, also details of expenditures and values to date. The following is a record of the rainfall and temperatures for the year : —

Statement of Expenditure. £ s. d. Amount at the 31st March, 1907 ... ... ... ... 2,676 12 7 Tree-growing ... ... ... ••• ••• ••• 515 18 1 General maintenance and repairs ... ... ... ... 80 11 4 Nursery-formation . ... ... •• ••• 95 12 10 Horse-feed, purchased and grown ... ... ... ... 47 14 3 Manures ... ... ■•• ••• ••• ••• 662 Tree-seeds ... ... •• ••• ■•• ••• 80 4 11 Tools, implements, &c. ... ... ... ... ••• 69 11 7 Water-supply ... ••• ■■• ••• ••• 95 7 0 Buildings —Stable, alterations to office, and Forester's quarters ... 137 5 8 Miscellaneous works ... .. ■• ••• ••• 920 Proportion of Nurseryman's salary ... ... ... ... 85 0 0 Supervision ... ..." ... ■•• •■• ••• 24 2 0 £3,923 8 5

Month. Rainfall. Number of Days Rain fell. Maximum Temperature. Date. Minimi um Temperature. Date. 1907. Lpril ... if ay ... une ... uly ... August September )ctober November )ecember 1908. Inches. 314 3-45 2-95 4-11 3-86 12-11 3-52 1-86 0-80 10 16 9 12 8 17 14 6 2 Degrees. 74 60 60 55 60 60 81 86 95 7 th 2nd 5th 1st 9th 3rd 29th 22nd 29th Degrees. [ 28 28 21 21 18 28 28 34 50 30th 15th 21st 11th 5th 17th 7th 1st 1st anuary February larch 1-35 018 11-11 3 5 14 98 85 86 29th 28th 3rd 32 36 34 18th 20th 16th Totals... 48-44 116