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Position of State-forest Plantations at End of a Five- to Seven-tear Period. Estimated Formed Area. Formation Outlay. Acres. £ State-forest plantations to be placed in maintenance ... 20,007 State-forest plantations to be consolidated ... ... 43,012 832,300 Forest plantations to be established under a long-time scheme by direct State action ... ... ... 5,000 70,000 Totals ... ... ... ... 68,019 £902,300 At the present time there are approximately 40,000 acres of State plantations in New Zealand, and by direct State action it is recommended that this area be increased to about 68,000 acres in seven years by tree-planting in the Rotorua district, Hanmer Springs district, and the Blue Mountains as hereinbefore mentioned. This area, as soon as well-distributed age classes have been secured, and the proper regulatory management installed, should produce from 65,000,000 ft. to 100,000,000 ft. per year. It should return 6 per cent, in interest on investment, and also a handsome reserve each year. Moreover, the active applied management of these properties (and the same may be said of the indigenous forests under management) should result in the sale of the forest products to the consumer at the lowest possible price consistent with tho cost of production, and should function also as very effective price-regulators on private offerings. Discussing No. (3), (" Private forests and importations will produce 30 per cent.") : A wide national forestry interest is evidenced all over New Zealand, and the advances that are being made, even without the State assistance, are indicative of the potential possibilities with judicious State encouragement. The cumulative private forestry effort in New Zealand is very considerable indeed, for there are many municipalities, County Councils, fruitgrowers' associations, and agriculturists who have even at the present time very large and definite investments in private forest plantations. It is generally accepted in professional circles that timber-growing is the function of the State, but in New Zealand an exception must be made to this general rule, owing to the extraordinarily long growing-season, the remarkable sustained performance of exotic trees (such as Pinus insignis, Gupressus macrocarpa, Finns ponderosa, and various gums), and the short rotation necessary (twenty-five to thirty years). The growing of trees for special uses in New Zealand is a sound and remunerative business. The writer, after carefully reviewing the situation, is satisfied that 30 per cent, of the national requirements in timber may be easily met by private and semi-public enterprise. With a rotation of thirty-five years, producing 200 ft. board measure per acre per year, 150,000 to 200,000 acres of planted land under management would be required. He is confident that the local authorities and private corporations and individuals could be stimulated to much greater activity in systematic planting when the profitableness of this activity is brought home to them. This aspect of forest-extension work could be considerably expanded, and it should be one of the principal duties of this Service to be the leader of public thought in this matter. Herewith are indicated several definite constructive means of increasing private forest planting, and by so doing secure a large and considerable private contribution to the timber needs of the nation. These are — (1.) Thorough investigation into the most economical methods and cost of growing timber by private individuals, and the diffusion of this knowledge through the country. (2.) Considerable expansion of the policy of supplying suitable and appropriate plantingmaterial at cost from the State nurseries. (3.) Free assistance to prospective and active planters in technical expert advice, assistance, supervision, and direction. (4.) The development of profit-sharing schemes of forest-planting with county bodies, municipalities, co-operative and industrial bodies, &c. (5.) Exercising co-operation on developing forest units for sustained yield under multiple private or public ownership combined, and in promoting the acquisition of private forest land by the counties and communities. (6.) Allocation of a Loan Fund of £100,000 from which advances might be made on approved projects. Imported Timber. —If the foregoing programme is adopted, at least in principle, the domestic timber requirements for New Zealand will be assured, with the exception, of course, of providing timbers for special use required for certain specific purposes in railway operations, public works, and other works. The total quantity involved under this heading should bo negligible, and would always be satisfied by importation. PROPOSED PROGRAMME OF THE FOREST SERVICE OPERATIONS FOR THE PERIOD 1920-26. 1. Regional organization of Service. 2. Development of practical and businesslike timber-sale regulations, and the formulation of a basis for future royalty adjustments. 3. Formation and operation of an efficient forest fire-protection organization.