G.—lo.

Included in the cost of fencing material was a large quantity of posts held in a dump on this scheme for the use of other schemes in the district. The number of posts debited was 9,788, or approximately 6,000 more than was used or required for the fences on this scheme. (e) Brents' Farm. —The expenditure to the 31st March, 1933, was £630, not including the cost of purchasing the farm. A certain amount of fencing was done during the year, which cost £78. Maintenance items for the year, including rent, insurance, maintenance of buildings and implements, licks, and manure for top-dressing, amounted to £93, while management expenses were £24. An item for wages, £274, is subject to adjustment between this farm and the Bulk Stock Account. No allowance seems to have been made from that account for the use of the farm for holding stock, change for sheep and cattle from bush-sick lands, or the services of the Manager and farm hands in the working of bulk stock, sheep, and cattle. The Land Purchase Account was increased by £290 for the cost of freeholding part of the farm. (f) Taheke; (g) Olcere; and (h) Tikitere. —It is necessary to review these three schemes together in order to understand the position of the accounts. Prior to the 31st March, 1933, the lands now comprised in the above schemes were scheduled under the designations Mourea and Taheke. The latter was financed entirely by the Waiariki Maori Land Board out of its own funds. The Mourea Scheme comprised lands adjoining the Taheke Block on the north-east of Ohau Channel, being leaseholds and small freeholds purchased from one, Vaughan, amounting to 1,100 acres, and also lands on the southwest of the Ohau Channel in part Native land or Native leaseholds purchased from Vaughan and also freeholds purchased from Vaughan and Pethybridge, the total area south of the Ohau Channel amounting to 1,900 acres. During the year 1932-33 McDowell's Crown leasehold was acquired, although the transaction was not completed until the current year. This area was handed to a party of Waikato Maoris under Te Puea Herangi for development. It was decided to reorganize these schemes and to redefine the limits thereof for better working and also to take over such portions of the lands under the original Taheke Scheme, financed by the Board, as the Native owners were willing to bring under the provisions of section 522 of the Act of 1931. It was also arranged that the Board should hold its rights under its mortgage after any charge in favour of the Department to secure expenditure from the Native Land Settlement Account, in the same manner as in the case of Te Kuit.i Base Farm. The limits defined for the reorganized schemes were as follows:—• (a) Lands to the north and north-east of the Okere Falls to come under a scheme to be known as Taheke and to be developed by the Department. Certain expenditure incurred for work authorized and carried out before the 31st March, 1933, to be paid by the Department when accounts were adjusted. (b) Lands between Okere Falls and Ohau Channel, which included portions of the former Taheke Scheme and the former Mourea Scheme to come under a scheme to be known as the Okere Scheme. This would render necessary an adjustment of accounts as between the new scheme and the old Taheke account on the one hand, and between it and the new Tikitere Scheme. (c) Lands south of the Ohau Channel to come under a scheme to be called the Tikitere Scheme. The schedules of expenditure and receipts do not show the adjustments of accounts implied in the reorganization stated above. The Land Purchase Account, increased by £1,821 during the year to £7,598, should be adjusted between the new Okere and Tikitere Schemes and within the Tikitere Scheme itself between the main scheme and the Waikato party section thereof. It is not possible under the circumstances to show the progress of the development work in such a way as to correspond with the accounts in the schedules. The expenditure may be stated thus, following the schedules: —

Omitting the debt to the Board and the items for purchase of land, the expenditure and receipts to be accounted for are £15,310 and £1,471 respectively, and the net cost to the Native Land Settlement Account, £13,839. The development work up to the 31st March, 1933, paid for from that account may be set out irrespective of the adjustments detailed above. (aa) Okere.—The Supervisor reported 79 chains of roading completed to that date ; 180 acres of noxious weeds (ragwort, briars, and blackberry) had been cleared. A supply of manure had been purchased for top-dressing portions of the block. Stock carried (Bulk Stock Account), 2,300 wethers and 260 bullocks, which it was reported the land would be able to winter.

8

— »-»• I | ». £ £ £ £ £ Taheke .. .. .. 13,069 1,114 .. 15 14,168 Okere .. .. .. .. 358 265 12 611 Tikitere (main) .. .. .. 14,264 7,598 1,451 20,411 Tikitere (Waikato party) .. .. 661 .. .. 661 Tikitere (Ruamata) .. .. .. 27 .. 8 19 13,069 j 16,424 7,863 1,486 35,870