C.—3

6. Plantation Cleaning and Thinning, In Whakarewarewa Plantation 130 E. risdoni poles were thinned from compartments in Block VII, and already ninety poles have been disposed of to a Government Department, the remaining ones being held to fulfil future orders. In Waiotapu Plantation 662 cords of firewood were obtained from the thinning of 29 acres in various compartments. The wood was used for fuel at the various planting-camps on Kaingaroa Plains. In Hanmer Plantation thinning was carried out over a total area of 226 acres, of which 72 acres was thinned for the second time. In the older portion of Balmoral Plantation 61 acres was thinned and on 104 acres pruning was done to a height of 5 ft. The material removed was utilized as follows : Hanmer, 2,636 cords firewood, 343 posts, 128 poles, 888 rails, 33,740 ft. board measure sawn timber. Balmoral, 350 cards firewood, 700 posts and poles. At Conical Hills 309 acres of mixed pine plantations were underscrubbed and given a light " A " grade thinning, all malformed and whip trees being removed. In Blocks XV and VIII, Naseby Plantation, underscrubbing and thinning were completed over areas of 133 acres and 91 acres respectively. At Dusky Plantation thinning was carried out on an area of 19 acres. A trial lot of P. Laricio thinnings was sold for mine-props which have proved quite satisfactory, so that as mining operations extend in Otago further sales of this nature are probable. 7. Timber-sales. The year's record shows increased activity in this branch of the work of the Service, which may be regarded as a hopeful sign that the milling industry is now definitely on the highroad to economic recovery after experiencing several very lean years. Probably a fillip was given to the trade by the fact that stocks of timber accumulated in former good years were practically exhausted, and undoubtedly a further contributing factor was the building subsidy granted by the Unemployment Board, which operated over the major portion of the year. During the troublous times through which the industry has been passing it has been the aim of the Service to offer milling-timber, as far as possible, in small parcels with easy payments commensurate with the cutting requirements and finance of applicants. This is mutually advantageous to the buyer who is not embarrassed by being compelled to seek fresh capital on a difficult monetary market and to the State which can exercise closer supervision over the operation and obtain payment with less risk of bad debts. That this policy has been appreciated is evidenced by the fact that fully 75 per cent, of the year's sales comes under the category mentioned, the exceptions being where well-established operators with big cutting-capacity mills required large blocks to keep their hands and plant employed, or where a mill was being shifted to a new bush which entailed the laying-down of an expensive tram-line before logging could be commenced, and the miller had thus to be assured of a fair milling " life." Sales of miscellaneous forest produce—posts, poles, battens, strainers, props, stays, house-blocks, firewood, &c. —were much more numerous than for several years. Under this head nearly two hundred permits were issued; in addition 1,650,000 ft. board measure of milling-timber was disposed of by permit, the total value over all exceeding £3,000. The increase in sales of timber may be gauged by a comparison of the year's results with the three previous years, figures for which are appended :—

The quantity of timber cut from State forests for the year was approximately 49,406,300 ft. board measure, which is 24-7 per cent, of the total cut for the whole Dominion. 8. Concessions to Sawmillers. The various concessions enjoyed by sawmillers during the year are summarized hereunder :— (a) A rebate of 10 per cent, for prompt payment of forest royalty from whatever source (this applied also to all promissory notes postponed by arrangement). (b) Abolition of payment of ground rent on sawmill areas. (c) Waiving of usual interest charged on overdue promissory notes. (d) The offering of timber only in response to an application from a bona fide and established miller (this prevents the creation of new milling-units). In addition to these general concessions, others of interest, particularly to exporters of timber, are : (a) A 10-per.-cent. reduction of royalty on rimu, matai (Podocarpus spicatus), and tawa (Beilschmiedia tawa) exported to Australia and Great Britain, and on silver-beech (Nothofagus Menziesii) exported to Great Britain. (b) A reduction of 20 per cent, off railway freights on all such timber. (c) A special subsidy of Is. per 100 ft. granted by the Unemployment Board on silver-beech and tawa exported to England and 6d. per 100 ft. on tawa exported to Australia.

7

Year. Quantity sold. Sale Price. Board Feet. £ 1930-31 .. .. 56 42,118,024 41,853 1931-32 .. .. 30 12,240,000 16,435 1932-33 .. .. 51 32,314,954 35,633 1933-34 .. .. 83 49,026,302 52,118