G.—lo.

These figures were compiled by the field officers, who were instructed to cover the whole field of operations in their respective districts, and, while noting the progress of all work, the position of every farm or development activity, and the value of the assets on which loan funds were secured, to schedule also the requirements for the current financial year. The summary of receipts and expenditure given in the schedules shows that up to the 31st March, 1933, the gross expenditure was £86,532, of which the largest item was the purchase of dairy stock, £32,495. Other items of note were for the purchase of grass-seed and other seed, £9,432 ; of farm and dairy equipment, £5,958 ; of fertilizers, £7,794. The sum of £12,013 was expended in the purchase of fencing-material and in labour connected with fencing. Other notable labour items were for clearing, bushfelling, stumping, scrub-cutting, and cultivation, £5,285 ; and draining, £2,200. The sum of £3,836 was expended in the discharge-of liabilities of various units whose accounts were taken over, to which was added the sum of £3,000 paid to the Tokerau Maori Land Board as the first instalment on account of over fifty settlers hitherto assisted from the funds of that Board. In previous statements, the feature of self-help as a factor in the development of lands in the North Auckland District was emphasized. If the above summary of work done is considered in relation to the actual expenditure thereon this feature is very prominent, and it must be adjudged that the Maori settlers of the North have carried out a vast amount of development work with their own labour and created assets for State funds with the least possible assistance from those funds.

The receipts taken into the accounts as from the commencement were as follows :—

f Deductions from cream cheques .. .. .. .. .. 16,118 Live-stock .. .. .. .. .. .. .. 409 Unemployment subsidies .. .. .. .. .. .. 4,840 Other receipts .. .. .. .. .. .. . . 1,114 £22,481

Motatau Base Farm. The accounts for this farm, which is in the Tokerau Maori Land District, are given separately in the schedules and show to the 31st March, 1933, a net expenditure of £4,132 on development work and stock, in addition to the cost of purchasing the leasehold, which is written down to £3,392. The farm has served the function of a stock-distributing station throughout the North. This policy has tended to cripple the dairying that has also been carried on at the farm. " B."—WAIKATO MANIAPOTO MAORI LAND DISTRICT. In the two previous statements the position in regard to the development schemes operating in this district were dealt with in great detail, so that not' only economic and financial factors might be clearly set forth, but also the tribal, traditional, and psychological factors which entered into the problems of the territory. 1. Watkato Group of 'Schemes. (a) Waipipi (Te Hakona) Scheme at Waiuku, which had been financed wholly by the funds of the Waikato-Maniapoto Maori Land Board up to the 31st March, 1932, was taken over by the Department, which paid £3,000 to the Board in reduction of its capital expenditure on the scheme. The balance is payable during the current financial year. The Board will continue, however, to carry on the Trading Account and will pay the profits to the Department periodically as well as interest on the Department's investment. There were five units occupying 2t2 acres grass, fenced and subdivided with 555 chains of fencing, with five cottages, five up-to-date cow-sheds and a central implement-shed. The stock carried comprised 108 cows, 5 bulls, 18 heifers, 40 calves, and a few sheep and working-horses. Except in the matter of water-supply and shelter, the five farms were well equipped. At the 31st March, 1935, the deh't of this farm stood at £5,992, which included £227 additional capital expenditure during the year. The Trading Account showed a surplus of £288. (b) Kaihau (Tahuna). —This scheme is still financed by the Waikato-Maniapoto Maori Land Board, whose capital expenditure at the end of March, 1933, stood at £5,862. This included capital expenditure during the year of £1,365 on further grassing, fencing, water-supply, building, and other development work and increase of stock and farm equipment. The Trading Account, after paying interest and maintenance charges, showed a surplus of £132. The five units on this scheme were reported to have cleared 352 acres, ploughed 334, grassed 320, of which 290 acres were manured. The fencing amounted to 698 chains and draining 77 chains. The stock carried comprised 134 cows with 6 bulls and a few heifers. The units' families were housed in six cottages, with four store and implement sheds and five cow-sheds. Te Puea Herangi, whose relationship to the development of Native lands among her people has been featured in previous statements, occupies one of the cottages and her husband is one of the units. (c) Onewhero.—This scheme is in four sections, on two of which good progress was made during the year, Onewhero proper and Opuatia. The progress on the Koheroa and Waikarakia Sections was not satisfactory, owing to disputes among the owners and the insufficient supply of implements.

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