C—3

CHAPTER X.—MISCELLANEOUS. Section A.—Legislation and Regulations. 92. Section 20 of the Reserves and other Lands Disposal Act, 1940, cancels the reservation as endowments for primary education over an area containing 278 acres 3 roods 3 perches in Otago Land District, being Section 1, Block V, and Section 1, Block VI, Rankleburn Survey District, and reserves the land as permanent State forest under and subject to the Forests Act, 1921-22. The land is an addition to the Blue Mountains State Forest. Section 7 of the Finance Act, 1940, empowers the Minister of Finance to borrow an additional £1,000,000 for the purposes of the Forests Act, 1921-22. Forest (Fire-prevention) Regulations 1940 (Serial number 1940/246) : These regulations, made pursuant to the provisions of the Forests Act, 1921-22, came into force on the 27th September, 1940. They consolidate existing regulations and provide further administrative machinery which experience has shown to be necessary in safeguarding State forests. Section B. —Finance. 93. Summaries showing payments and receipts from State Forests Account, together with comparative figures for the previous three years, are returned as Appendix XII. The final audited accounts will appear in accordance with Treasury requirements in parliamentary paper 8.-l [Pt. IV]. Allocations of revenue to the Consolidated Fund and to local bodies are an index of increased timber sales, and increased salaries and general expenses likewise reflect needful additions to staff and the expanding cost of timber-control activities. Not unexpectedly, exotic-forest expenditure shows a marked reduction as a result of the ever-increasing labour shortage, although indigenous expenditure has increased as a result of logging developments in connection with the war effort. The utilization item includes both capital and operating charges which will be reflected next year in very large increases in revenue. With privately-owned forests being cut out much more rapidly than State forests, there is an ever-increasing demand for State-owned stumpage, and this is reflected in timber sales for the period. The fall in permit revenue is due to the labour shortage and is expected to continue. The increase in log sales is accounted for by expanded production of white-pine for biitter-boxes and of kauri for minesweeper construction. The large increases in utilization items are the first results of the sawmilling and creosoting activities, but represent only a fraction of a full year's operation and will therefore continue to show substantial gains. 94. Under various statutes provision is made for the payment of portion of revenues received from timber royalties, &c, and the following table shows the authority and the payments made from revenues collected by the Forest Service :—

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Consolidated T , . ., .,. Local AuthoriFund (under Authontu* ties under Sec tion Year Section 39 of Section 17 6 _ 7 of Fore8t TotaL Forests Act, oi Fl ™" c .° Act ' Amendment Act, 1921-22). Jyz *'- 1926-27. £ £ £ £ 1938-39 .. 18,712 14,191 5,825 38,728 1939-40 .. 14,416 13,202 8,278 35,896 1940-41 .. 16,151 16,593 7,075 39,819 Total for three- 49,279 43,986 21,178 114,443 year period