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builders at the time, but it is a subject on which they did not seem to agree, and was too technical for me to comprehend. According to the final costing worked out, the figures are as follows £ s. d. £ s. d. £ s. d. Section 18 60 14 1 126 9 0 187 3 1 Section 3 60 14 0 123 13 3 184 7 3 Section 2 .. .. 32 0 0 122 12 1 154 12 1 Section 5 32 0 0 118 16 2 150 16 2 £185 8 1 £491 10 6 £676 18 7 The cottages on Sections 18 and 3 were built on wages under Mr. Pine's supervision. The cottage on Section 2 was built by a Mr. Zander, and that on Section sby Tuheka both on contract at £32 As the result of last year's building programme, I will be in a better position to estimate buildingcosts, and also keep them at a low figure. Although the figures for the cottages on Sections 18 and 3 are high compared with the other two, lam of the opinion that full value was put into them. As a matter of fact, competent men have placed as high a value on the buildings as £240 each. Milking Sheds and Yards.—All the sheds are three-cow plants (six bails), and are very substantially constructed. My costing on the sheds works out approximately at Wages. M t e rtage and Seven sheds £98 711 £328 15 1 £427 3 0 which works out at approximately £61 os. sd. each. (See analysis under Item No. 7—Buildings). Milkers (Six Men), £292 ss.— In addition to milking 172 cows, these men have been engaged in— (1) Haymaking : (2) Clearing drains (300 chains) : (3) Erecting subdivisional fences (80 chains) : (4) Erecting yards, concreting cow-sheds : (5) Erecting sheep-yards : (6) Water-supply. My apportionment of the £292 ss. shown as " Milkers' wages " would be — £ s - d - Milking . • • • • ■ • • ■ • ■ • " ™ 0 Concreting sheds, erecting yards . . • • • • • • .. 30 0 0 Haymaking .. .. " on n n Clearing drains .. ■ • • • • • • ■ • • .. zu u u Fencing .. ■ • • • • • • • • • •' ? 9 Erecting sheep-yards . . • • • • • • • • • • 415 0 Water-supply .. • • ■ ■ • ■ • • • • .. 20 0 0 £292 5 0 The last four items refer to five men only, as Skid Wi was engaged on his own section after the sheds were built, and in between milking and haymaking. Pastures (1,500 acres approximately) .—The above area, which I estimate is now m grass, has been brought in at an average labour cost of £1 12s. Bd. per acre, as follows : £ s. d. 1,665 acres scrub-cutting .. •• •• •• •• 1,198 2 3 1,500 acres ploughing, &c. .. • • • ■ • ■ •• 1 > 299 17 3 1,500 acres sowing .. •• •- •• •• 1 9 2,674 1 3 Less cost of benzine refunded .. .. • • • ■ 266 15 9 2,407 5 6 Add cost of ploughing, &c., on Section 30—not yet paid for.. 40 0 0 £2,447 5 6 The foregoing figures do not allow for the unemployment subsidies which amount to £313 17s. 4d. in respect of the above work, and which reduces the average cost per acre on 1,500 acres by approximately 4s. 2d. per acre to £1 Bs. 6d. per acre. Subdivisions.—Based on a plan prepared by Mr. Mitchell—with variations as required by the Hon. the Native Minister —I have made a compass survey and subdivided the 2,200-odd acres on which development work is now being concentrated into twenty-five sections, and a settlement reserve of 11 acres. Various areas aggregating about 40 acres are also tentatively set aside as plantation reserves. For easy reference I have prepared a schedule showing the sections with brief descriptions of each —Schedule B. t , i .i General. —The men on this scheme worked exceedingly well during last year, and, except for the building programme, were able to complete the full programme. There has been a continued improvement in the health of the community on the scheme, and during last year very little time was lost through sickness.

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