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During the year the Board has collected considerable sums by way of rents, royalties, and purchasemoney. Most of this money has been distributed to the beneficiaries. In some cases moneys have been held by the Board under the provisions of section 281 of the Native Land Act, 1931, and distributed for the benefit of the beneficiaries after due inquiry. During the year the Board has acted in several cases under the provisions of section 294 of the Native Land Act, 1931, whereby various abandoned leases have been determined by re-entry and the titles cleared to enable development to be undertaken by the owners themselves. Board's Finances. —The book value of the assets of the Board amounts to £110,517. Of this sum, £50,213 is represented by cash in hand or at call. The remainder consists of mortgages, freehold properties, and other miscellaneous assets. Two of the Board's properties, representing an asset value of £11,571, are being further developed by the Department, and the Board has agreed to permit such development expenditure to be a first, charge on the properties. In several instances the Board has agreed also to defer its first-mortgage charge on several properties in order to permit further expenditure for development purposes by the Board of Native Affairs. The liabilities of the Board to its beneficiaries total £80,897, and the total reserves amount, in round figures, to £28,000. During the year £44,300 was received on account of beneficiaries, and an amount of £47,753 distributed to them. Housing.—The housing situation in this district is not perhaps as acute as elsewhere, but, generally speaking, it is far from good. The decision of the Government to set aside a sum of £50,000 as a Native Housing Fund was hailed with great satisfaction by the people. This district's allocation from this sum was £8,100, and the Board's assistance was sought by the Board of Native Affairs in investigating applications. From time to time, too, the co-operation of the Board with regard to the assignment of rents, royalties, &c., has been obtained, as also has the co-operation of the Court with regard to " site " problems, charging-orders, &c. Up to 31st March, 1937, advances approved under the Native Housing Act and under the Housing Fund Scheme total approximately £15,000. The houses have been erected mainly by the Public Works Department and are well distributed over the district. General Living-conditions. —Apart from those people who have been given development or housing assistance, living-conditions have not shown any material improvement ; indeed, improvement can scarcely be expected until the people have been properly housed. From reports received the health of the people generally cannot be considered satisfactory ; sickness appears to have been very prevalent during the year. On the other hand, education has shown a marked improvement. Where once the attendance of Maori children at school was very poor, one finds to-day that the parents are appreciating to some extent the value of education and are making every effort to give their children a primary-school education at least. Waiariki District. General. —The growth of Maori Land Board and Native Land Court departmental activities in this district has been little short of phenomenal. In 1912, when a separate District Office was established in Botorua, a Judge and two clerks constituted the personnel. In the intervening years up to 1930 steady progress was made in keeping with the added duties and responsibilities placed on the Court and Board as each succeeding year's legislation tended to extend the assistance to or protection of Natives, particularly in regard to their interests in land, their most valued heritage. With the advent of Native-land development in 1930 the whole perspective was changed. An inadequate staff made valiant efforts to cope with the increased responsibilities during a period of depression which coincided with this new venture. Court and Board activities were considerably handicapped by diversion of staff to the work of development. It is pleasing to report that with a more adequate staff and an improved organization at the present time all phases of departmental activities, whether within the scope of the Court's and Board's ordinary activities, as in the case of consolidation, completion of titles, and general Native welfare, or arising by delegation, as with the Native-land development and Native housing, have been brought to a greater degree of efficiency than was hitherto possible. Every effort is being made to provide the Maori people in the district with helpful advice and assistance in the various problems which confront them, particularly those arising from or in relation to their interests in land. Court Activities. —In keeping with the improved economic conditions prevailing the business transacted by the Court shows a steady increase. The desire of individuals to obtain assistance under the Native Housing Act has resulted in the completion of a number of titles. In the report of the year ending 31st March, 1937, mention was made of the tendency for sales of timber to be negotiated privately without reference to the Court. While this tendency has considerably abated and is partly remedied by the enactment of section 3 of the Native Purposes Act, 1937, it is considered that further legislative authority is required to adequately protect the interests of the beneficial owners and ensure the maximum economic utilization of our exotic forests. This could be achieved by empowering the Court to grant an injunction on the application of the Board or any forestry or State officer where standing or fallen timber is being cut or removed otherwise than in pursuance of a contract confirmed by the Court. In continuance of the policy of fostering the development of lands under Part I of the Native Land Amendment Act, 1936, in lieu of permitting their sale or lease, the Court has made, or caused to be made, inspections of areas which appeared to offer greater advantages by development than would accrue to the owners if a sale or lease were permitted. Where sales have been confirmed the Court makes particular inquiry as to the circumstances of the vendors with a view to the proceeds of any alienation being used for the improvement of their living and housing conditions. This policy has resulted, in a number of instances, in the erection or renovation of several cottages and supply of household necessities.

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