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During the year under review the following programme of work was carried out: 180 chains new fence erected, 77 chains drains excavated, 80 chains old drains cleaned, 60 chains road repaired, and 30,000 shelter trees planted. Peka. Comprising a total area of 1,364 acres, this scheme is bounded by the Rotorua-Atiamuri Road and the Rotorua-Taupo Main Highway, just south of the Hemo Gorge. The property is naturally watered by springs and streams, and to date 410 acres have been put in grass. As the pastures have filled out in a first-class manner, it is intended this season to establish two units with dairy herds. Unemployed Natives of Whakarewarewa carried out the following work during the year : 380 acres top-dressed, 30 acres cultivated for turnips, 50 acres second growth cleared, 60 tons hay cropped, 141 chains fencing erected, and 100 chains drain cleared. The block wintered 500 hoggets and 30 cows. Wharenui Nursery. This nursery, covering approximately 10 acres, was established in 1933 as a source of supply of shelter-trees for development work. The area in use is part of the Waiariki District Maori Land Board's Wharenui property. During the year 653,000 trees were transferred to schemes in the Rotorua area. The following varieties were distributed : Radiata eugenoids, Laivsoniana, Eucalypti, Macarthuri, Vimincilis, acacia, Douglassi, and seedless barbary. At the 31st March, 193-5, there were 1,242,000 trees on hand at the nursery. The depredations of the grass-grub caused heavy losses in young trees during the year. Four men, three women, and twelve minors are dependent on the scheme for their livelihood. Waipapa Bush. As previously reported, this property, the Waipapa-Whatapo Block, was purchased in 1930 to ensure a supply of fencing-timber at a reasonable price for the development schemes in the Rotorua area. The bush has been practically worked out, and the rate per 100 for posts, &c., charged to other schemes was adjusted to the actual cost of extraction. The balance of the expenditure shown as a charge against this block represents the estimated residual value of the assets remaining, viz., land, £90 ; royalty value of matai posts and riniu, £424: Total, £514. Okere. The lands comprising this scheme were originally included in the Taheke and Mourea development schemes, but it was deemed expedient to exclude them, and accordingly all the blocks between the Ohau Channel and the Okere River at Rotorua were included in a new scheme under the above title. The total area is 6,000 acres, of which 2,050 acres are in grass and rough feed. The owners of these lands belong to the N'Parua and N'Takinga ha/pus of the Te Arawa Tribe, and reside in and around the Mourea Township. They efficiently carried out the following programme of work during the year under review : 800 acres cleared of second growth, 400 acres burned and surface sown, 150 acres cultivated and put in turnips, 600 acres grassland top-dressed, 240 chains road repaired and widened, 400 chains fire-break cleared, and 150 chains new fencing erected. The property, which is drained by natural streams, is heavily infested with ragwort, but the policy of crushing and consolidating with stock is resulting in a gradual cleaning-up of the pastures. The block wintered 2,200 ewes and is at present carrying 1,637 ewe hoggets, 506 breeding-ewes, 921 store ewes, 255 breeding-cows, and 12 bulls. The lambing percentage was over 100, and wether lambs went to the works at an average of £1 per head. Store ewes were used to crush out the badly infested areas at the back of the scheme. The Supervisor reports that it will be necessary to run these blocks as a grazing proposition for some time to come. Tikitere. The Tikitere scheme originally formed part of the Mourea developmental area and comprises those lands situated to the south of the Ohau Channel within twelve miles of Rotorua. The area under development contains 1,147 acres adjoining the Tikitere thermal regions, and the covering of Rotomahana mud from the Tarawera eruption over the greater part of the surface of the Tikitere lands has made it very responsive to cultivation and manuring. The Supervisor, referring to the Okahu paddock of 160 acres, in his report for 1935 states : — " This property is used for bulk-stock grazing as it is very healthy and without doubt one of the best in the district. Last winter it averaged five ewes to the acre, and the lambs all went off fat, killing out at 35-37 lb. At the present time there are 786 ewes and 75 dairy heifers on the property." Five active units have now been established who are supplying the factory, and the returns for last year for 233 cows was 27,529 lb. butterfat. In addition, the scheme, apart from Okahu, wintered nearly 1,000 sheep. The Supervisor reports that these returns should increase considerably next season as the pastures are getting well established and also an increased interest is being shown by the units.

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