C.—3

CHAPTER V,— GENERAL. 1. Legislation. The only legislation which affects the Service is contained in the Reserves and other Lands Disposal Act, 1933. Sections 7 and Bof the Act changed the reservation over a total area of 686 acres in Slarlborough Land District, being Sections 1a and Ba, Block VIII, Wakamarina Survey District; Section 43, Block VIII, and Section 1, Block XI, Heringa Survey District; and Section 33, Block IX, Wakamarina Survey District; from provisional State forests to Scenic Reserves. Section 12 enacted a similar change with respect to an area of 277 acres 2 roods 27 perches in Nelson Land District, being Section 23, Block VII, Kaiteriteri Survey District. Section 14 changed the reservation over an area of 37 acres 2 roods 6 perches in Otago Land District, being part Section 28, Block X, Woodland Survey District, from a provisional State forest to recreation purposes. Section 17 changed the reservation over 1,900 acres in Southland Land District, being part of Run 441, Manapouri Survey District, from a provisional State forest to National Park purposes. 2. Finance. Receipts. Receipts from all sources for the financial year ended 31st March, 1934, amounted to £52,709. Details, together with comparisons with the previous two years, are appended : —

TABLE 9.

The increase in revenue as compared with last year indicates that the position in the sawmilling industry is gradually showing signs of improvement, which is also evidenced by an increase in the number of mills working full time and the reopening of others which had suspended operations. Payments. The net expenditure from the State Forests Account for the financial year ended 31st March, 1934, was £116,386. A summary showing payments under the main subdivisions is appended, together with the corresponding figures for the years 1931-32 and 1932-33.

TABLE 10.

14

Item. 1933-34. 1932-33. 1931-32. Indigenous-forests receipts — £ £ £ Timber-sales .. .. .. .. .. 31,017 27,129 36,320 Timber royalties and trespass .. .. .. 3,164 3,667 3,751 Leases, grazing .. .. .. .. .. 1,816 1,637 1,704 Sawmill-sites, industrial, &c. .. .. .. 1,348 1,412 1,865 Miscellaneous .. .. . . .. .. 2,206 1,587 2,249 National Endowment Account allocation .. .. 6,612 6,221 6,391 Nurseries and plantations — Trees and seeds .. .. .. . . • • 1 Firewood and poles .. .. .. • • r" 6,546 3,542 3,278 Miscellaneous . . . . .. .. • • J Totals .. .. .. .. .. 52,709 45,195 55,558

Item. I 1933-34. 1932-33. | 1931-32. ___ [ I . I Fixed charges and staff salaries— £ £ £ Interest and expenses of raising loans .. .. 269* 97,256 90,223 Staff salaries .. .. .. .. .. 32,901 34,232 40,974 Allocation of revenue — National Endowment Account .. .. .. 3,893 3,840 6,337 Local-body payments .. .. .. .. 3,508 3,259 6,416 Management, establishment and development- — Indigenous forests .. .. .. .. .. 8,817 9,501 12,893 Fire-fighting equipment and prevention .. .. 820 668 1,578 Educational : Reference library, &c. .. .. . . 120 411 276 Research and experimental equipment, &c. .. .. 1,022 1,017 1,199 Afforestation: Nurseries and plantations .. .. 54,292 49,348 107,795 Land-purchase .. .. .. .. .. 10,542 12,646 6,874 Miscellaneous .. .. . . . . .. 202 205 502 Sand-dune reclamation .. .. . . .. .. . . 110 Totals .. .. .. .. .. 116,386 212,383 275,177 * Note.—Interest on loans is now being carried forward as a liability to the Consolidated Fund until realization of the plantations.