C.-3.

EEPOET.

INTRODUCTION. For easy reference a few of the major activities of the Service and other matters of general interest are briefly reviewed hereunder : — Afforestation. —As a part of the general plan to provide as much labour as possible during the " off season " —i.e., the winter months —the Service extended its tree-planting programme, and at the close of the season the total new area planted, in round figures, was 30,500 acres, an increase in area of approximately 87 per cent, in comparison with the 1933 figures. With the afforestation of a further 23,000 acres —the projected programme for the current season —the total area of the State plantations will exceed 400,000 acres. Sales of Timber.—A more optimistic outlook obtained in the milling industry throughout the year, and the increase in timber-sales was very noticeable. The year 1931-32 undoubtedly witnessed the peak of the depression in the sawmilling business, since when conditions have steadily improved, although some time must yet elapse before a return to normal conditions can be definitely assured. Timber Production.—The total quantity of timber cut in the Dominion for the year was approximately 195,000,000 ft. board measure, of which approximately 24 per cent., or 49,400,000 ft., was cut from State forests. Mining Privileges in State Forests. —Applications for mining privileges continue to increase, doubtless owing to the high price of gold, and in the Hokitika office alone seven hundred applications were received in the last twelve months. When it is pointed out that very many of the areas applied for are located in State forest and that every application must be investigated separately and the area not infrequently inspected and defined on the ground, some indication is given of the extra work thus thrown upon those offices of the Service which are in mining districts. Satisfactory arrangements have been entered into with the Mines Department to safeguard the interests of the forests. Sawmills. —The year's operations showed very little change in the number of working sawmills, although the total number recorded has risen from 527 to 534, of which 3, when working, operate principally in native forests, lin exotic forests, and sin both natiye and exotic forests. Mills working in State forests averaged about 25 per cent, of the total, the actual figure being 138. A monthly average reveals that 180 mills worked full time. Office Fire. —A fire occurred in the Head Office of the Service on the night of the 28th March, but, thanks to an excellent save by the local fire brigade, the fire, although fanned by a strong southerly wind, was quickly extinguished. No structural damage was done to the building, although it required complete relining, which has since been done, but certain scientific instruments were severely damaged and photographic and draughting records were blackened by smoke and water. General. —The year's work has been often arduous and difficult, and the good results herein recorded could not have been accomplished without the loyal co-operation and able support of all officers. FOREST POLICY. General.—The prominence given to exotic-forest establishment in the general forestry programme during the last nine years has resulted in a tendency to view this particular activity in a false perspective, and, to _bring the national-forestry situation into proper focus, it is necessary to restate the policy under which the State Forest Service is operating and must continue to operate. The national forest policy has a two-fold purpose —the maintenance of climatic, soil, and water equilibria, and the supply of timber and other forest-produce. Owing to its influence upon agriculture, the former objective —viz., the conservation of the protection forests —is of the greater national significance. Conservation may be defined as the preservation of the forests by wise use, and the intensive management of these forests will assist to solve the problem of timber-supplies. It is with this latter consideration that the establishment of exotic forests is most intimately associated. The outstanding features of the national timber-supply situation are— (1) That of the remaining virgin forests Qver 80 per cent, are overmature stands in which there is no net growth. New "growth is offset by decay, &c. : (2) That the conversion of this 80 per cent, of overmature forests into healthy growing stands of indigenous species producing timber to the maximum capacity of the forest soil will necessitate silvicultural management extending over a long period, probably one hundred and fifty years : (3) That current timber demands are depleting the virgin indigenous forests at such a rate that, without other provision being made, an adequate supply of timber would not be available during the whole of the intervening period: (4) That the early establishment of exotic plantations as a supplementary forest capital resource is therefore of great importance, and it is for this reason that the establishment of large forests of exotic trees has assumed such proportions during recent years :

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