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The area enclosed by the wire-netting fence some three years ago, for extension purposes, was notorious for the numlier of rabbits it contained, and, although different measures for exterminating the pest have been constantly in operation, it is necessary to still apply all energies available, in the form of trapping, hunting, and poisoning. A temporary subdivision fence, enclosing approximately 400 acres, will require to be erected shortly, and by the time this area is planted the complete eradication of rabbits is anticipated. On the foreman vacating the old house on No. 2 Plantation, the employees were offered, and accepted, the use of the building. As hut-accommodation for only twelve men has been provided at this station, this idea was the wisest solution of the difficulty, and saved any expenditure on buildings that might have followed. Details of expenditure for the year are appended. Statement of Expenditure. ~ d Amount at 31st March, 1909 ... ... ... ...11,877 12 0 Pitting ... ... ... ... ... •■• ... 582 12 5 Tree-planting ... ... ... ... ... ... 802 15 0 Cartage of trees ... ... ... ... •■■ • . 43 0 (i General upkeep of plantation ... ... ... ... (ill 5 7 „ repairs ... ... ... ... ... ... 32 3 7 Horse-feed purchased and transferred from Gimmerburn ... 25 12 0 Buildings, additions to cottage ... ... ... ... 24 16 2 Tools, implements, &c. ... ... ... ... ... 8 17 0 Miscellaneous works ... ... ... ... ... 60 9 4 Salaries— Plantation foreman ... ... ... ... ... 210 0 0 Nurseryman'B proportion of ... ... ... ... 35 0 0 Supervision ... ... .. ... ... ... 25 10 0 £14,339 13 7 H. Howe, Plantation Foreman. R. G. Robinson, Superintending Nurseryman. Waitahuna Plantation, Otago. (Dredged area, 12 acres; altitude, 331 ft.) It is very gratifying to be able to report of the favourable progress generally that is being made by trees growing on this experimental dredged area. The growth of larch, English birch, and alder is almost phenomenal. A great number of these trees have already reached a height of 10 ft., and present a strikingly healthy appearance. It is rather unfortunate, however, that such trees as Acer saccharum and Fraxinus excelsior were included in the original selection, as these varieties have proved to be entirely unsuitable for existing conditions, and by their failure to succeed a most irregular appearance is given to the plantation. In replacing the mentioned undesirable varieties, 11,500 trees, comprising larch, birch, Pinus Laricio, and alder were used, and an excellent " strike " has resulted. Converting abandoned dredged areas into forests must at all times be an expensive undertaking, when the eradication of gorse, usually connected with mining reserves, is taken into consideration. There was £11 12s. expended in removing gorse and*broom that was interfering with the progress of trees, replanting, and general maintenance work. Probably £6 will meet requirements for maintenance work during the ensuing year, and, as the " leaders " should then be sufficiently high to escape injury from gorse, an annual expenditure of a very small amount should suffice to keep the reserve in order. The' Department is indebted to a local resident who kindly furnishes periodical reports relating to tree-growth, &c. Amended is a statement of expenditure for the year, and to date. Statement of Expenditure. £ s d. Amount at 31st March, 1909 ... ... ... ... 183 0 9 General upkeep of plantation ... ... ... ... 11 12 0 Supervision ... ... ••• ••■ ••• ■■• 200 £196 12 9 I!. G. Robinson, Superintending Nurseryman.