0.—3,

Section G. —Staff and Office Inspections. 24. Frequent inspections of regional field activities have been carried out, particularly of timber-cruising work, but fewer office inspections were made owing to pressure of other work. With the reorganization of Head Office staff and the appointment of an Assistant Accountant, it was anticipated that a greater share of the Accountant's time would be available for inspectional duties, but this was not possible owing to many staff changes and an increase in the volume of work at Head Office. The position will be remedied as early as possible. Section H.—Modification of Executive Charges. 25. No changes in the boundaries of conservancies were made during the period. Those made last year by an interchange of territory between the Rotorua and Wellington charges have been justified by subsequent experience, the Gisborne territory in particular proving much easier to administer from Rotorua than from Palmerston North. Section I. —Relations with other, Departments. 26. With beneficial results, the usual routine inspections of accounts and stores were carried out by the Audit Office Inspectors, while staff inspections were made from time to time by Inspectors from the Public Service Commissioner's Office. Disclosed weaknesses in accounting, stores, and other practices—all of a minor nature—have been duly corrected. In matters affecting the purchase of stores and equipment, reference should be made to the assistance received during a very difficult period from the Stores Control Board, the Post and Telegraph Department, and the Public Works Department, which constitute the authorized purchasing agencies for all Government Departments. A cordial relationship lias been maintained with the Lands and Survey Department, particularly in reference to matters affecting soil erosion and scenic preservation. Co-operation has continued with the Native Departmetrt in the administration of Native timber sales, CHAPTER lII.—CONSTITUTION OF STATE FORESTS. Section A.—Changes in Area. 27. The progress of land classification in the Dominion is reflected in changes in the area of State forest, a total of 314,453 acres being set apart as permanent and provisional State forest and 2,905 acres withdrawn from reservation —a net increase of 311,548 acres. The State forest area now totals 8,762,079 acres, or 13-2 per cent, of the total land area of the Dominion. The details of these changes are recorded in Appendices I and 11. Sixteen areas were withdrawn from reservation, all for settlement purposes. Of the total area of 2,905 acres, 2,554 acres, representing almost 90 per cent., were in Westland. The additions—3l4,4s3 acres—were spread over all conservancies, the most important areas being in Westland (151,676 acres), Wellington (83,621 acres), and Canterbury (53,168 acres). Of the total, protection forest comprised approximately 94 per cent., virgin milling forest 3 per cent., open land for exotic afforestation projects 2 per cent., and open and forested lands for forest management purposes 1 per cent. The protection-forest areas are located mainly in Westland, Wellington, Canterbury, and Nelson Conservancies, the virgin milling forest mainly in Westland and Auckland, the afforestation areas in Nelson and Rotorua, and the forest-manage-ment areas in Auckland and Southland. The areas of milling-timber being largely provisional State forest will, where the land is suitable, be made available for agriculture after the merchantable timber has been removed. An area of 20 acres in Canterbury Conservancy was donated for State forest purposes and a caretaker's cottage site acquired by exchange. Section B. —Changes in Status. 28. Areas of provisional State forest permanently reserved aggregated 335,555 acres for the year, and with the exception of 514 acres is located in Westland Conservancy. It comprises both protection and milling forest unsuitable for farming, and brings the grand total of permanent State forests to 5,676,727 acres, or 64-8 per

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