G.—10E

Plant and Equipment.—'The three milking - plants are working satisfactorily The separators are all in good working order, while the other dairy utensils are also m order. The section-holders have a very limited number of implements, which are in fair order only. Harness and tools : All have a fair supply. Butterfat. The graph showes a marked improvement in quantity and quality as is indicated : Season Season Season Grade. 1930-31. 1931-32. 1932-33. lb. lb. lb. Qppnnrl •• 24,799 14,143 9,579 S rst ..15,822 32,468 49,267 Finest " !! 432 395 6,940 The improvement in grade is due to better milking-sheds, better methods, water-supply, and more regular delivery of cream at factory, and as there is a premium of Id. per pound butterfat on first grade as against second grade, the past year's returns have been considerably increased. Cream-coolers will be needed to further assist grade improvement, but I do not anticipate a very high percentage of " Finest Grade " until the factory lorries are able to collect the cream daily, especially during the summer weather. Scheme Live-stock and Plant.—Cattle : On hand—3 two-year pedigree Jersey bulls (Paraparaumu purchases) ; 21 in-calf heifers (Eltham purchases); 4 two-and-a-half-year m-calf heifers. The above stock are all in good condition and will be issued out this season. Working-horses 6, foals 2. The working-horses are working on the group sections at Hiruharama. Sheep : 208 ewes, 7 rams. I anticipate a fair net profit from the sheep purchased, and I have no hesitation m stating that withqut sheep to assist in checking the ragwort on the badly infested areas dairying on those areas is hopeless, and from present indications more sheep will be required. Scheme Plant, Tools, and Equipment. —The whole of the plant, &c., is in working-order. Labour. —There is ample offering at our contract rates. Freights—On butterfat the rate is fd. per pound per river steamer, but |d. of this amount is paid by the Dairy Company. n , On fertilizer the rate at present is 15s. per ton, but was previously 30s. per ton, and on all other goods 60s. per ton. Freiehts will not be reduced until the river road is completed as far as Ranana and later to Hiruharama. It will be some time before this work will be completed, but every endeavour should be made to expedite it. Cost of Livinq.— Groceries : The main items are flour, sugar, tea, baking-powder, salt, and soap. These are necessities to any community, and in our instance the cost to the consumer is high due o the high freight charges, and it is reflected in the higher rate on some of the contracts but does not leave much to buy clothing. The section-holders are in a better position although the returns for butterfat have been low. Work done —On the whole the work done has been well carried out. Fencing, buildings, roadway, tracks gorse and other weed clearing jobs completed being evidence of same ; but it is absolutely necessary that maintenance work must be at all times attended to. The Peovle. —Those under the scheme are now assisting each other more than they had done before, due, without doubt, to the recent visit paid by several of our farmers, foreman, and secretary to other schemes. The hapus in general are taking more interest in the progress of the scheme, and many are clamouring for sections and assistance. Foreman and Secretary.-Mr. Tapa, the foreman, is carrying out his duties well, and also the secretary, Mr. Ngene Takarangi. They are working m harmony with the people, the Office, and myself. Outlook and Prospects.—The scheme is no doubt one of the most beneficial movements ever inaugurated for the good of the Maoris on the Whanganui River. They have the land and the manT3 together with sufficient foresight to realize that the settlement of their lands is the only avenue with suffident scope to meet the needs of the majority of them. This land-development has given them a new hope Those under the scheme as a whole are doing their share. The young people are uniting with their elders in an effort to make good. Imbued with this spirit together with some assistance by the Government, I am confident that the Ranana Development Scheme will be a success. Administration— Judge Browne has given us every assistance and consideration. He is keenly the progress of the scheme and the welfare of the Maori people of this district m general. Mr Brooker Acting Registrar, who is in charge of the accounts and general business, has assisted the scheme in evray way and has endeavoured to see the Maori's point of view m most things, and he is sympathetic. . The staff in general has also given us every assistance. On behalf of the scheme farmers, the Management Committee, and the Whanganui Tribe, 1 wish to extend to Judge Browne and his staff our thanks.

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