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exploitation areas of timber not hitherto marketable, and in the Rotorua and Tauranga Counties timber-mills are buying milling rights, thus giving settlers employment and enabling them to get their lands cleared for future productiveness. Improved-farm Settlements. The three improved-farm settlements—Rangitoto Nos. 1 and 2 and Korakonui.—which are still in their earlier stages, continue to make good progress; the improvements are greatly in excess of requirements, and, with the assistance given in supplying cows, the majority of the settlers are now dairying, and the holdings are becoming self-supporting. Flax Industry. This has not been very successful, owing to the low market price of fibre and shortage of raw material. A few mills have worked regularly, and near Kawakawa a considerable amount of flax has been planted. Kauri-gum Industry. The past season, like its predecessor, has been a favourable one for obtaining gum from the deep swamps which form a portion of the fields, especially the extensive northern ones. There has been a large output, and, as good prices have prevailed, many of the diggers have made high wages. Arrangements are now being made to dredge for gum in the north, but the success of the idea has not yet been proved. The number of British diggers appears to be decreasing. During the year an area of 5,309 acres has been withdrawn from existing kauri-gum reserves, inquiry having shown that the land no longer contained gum in payable quantities and that it could be better utilized for settlement purposes. The inquiries of the recently appointed Gum Lands Commission will no doubt result in freeing for settlement a considerable area whose gum-contents would not justify its being withheld from settlement. Although it is true that much of the kauri-gum land is of poor quality, yet the popular impression on this point probably greatly overestimates both the extent and the poverty of the inferior lands. Much of the area locked up in the gum reserves is without doubt capable of responding well to suitable cultivation and the application of manure for ordinary farmingpurposes, while it has also been proved that these lands are admirably adapted for fruitgrowing, provided a suitable aspect and shelter are obtainable. There have been numerous inquiries for areas under the gum-lands settlement provisions contained in the Act of 1912. Sand-drifts. The Ranger draws attention to the question of sand-drift in the far north, where the drift is rapidly encroaching and covering Crown lands and other properties, places being noticed where the drift has encroached from sto 10 chains during the last three years. Both on the valuable swamp lands around Awanui and Kaitaia and northward from Waipapakauri serious encroachment is taking place, and unless something can be done to check it irreparable damage will result. The same process is taking place —though perhaps to a lesser extent —in other parts of the western coast-line of the district as far south as Kawhia. Lands to be opened. An area of 242,389 acres of Crown land in different parts of the district was open for selection under the various tenures at the close of the year, in addition to which I anticipate that a total area of approximately 126,620 acres will be placed on the market and selected during the ensuing year. The largest area to be opened in one locality will be the Moerangi Block, of 17,418 acres, near Kawhia. Education Endowment Reserves. The total area of education, endowment reserves in the district is 126,353 acres, out of which 76,093 acres are held under lease by 657 holders, paying an annual rental of £4,978. An area of 8,974 acres was offered during the year for lease for twenty-one years with right of renewal upon revaluation and full protection for improvements effected, but only 934 acres was taken up. A. considerable portion of the area, was, however, situated in localities which are not at present very attractive to selectors. Renewals of expiring leases were arranged in thirteen cases, covering an area of 1,061 acres, the new rental payable being £134 per annum, as against £71 paid during the previous term. Departmental. During the year nineteen ordinary and special meetings of the Land Board were held. The amount of business to be dealt with at all the regular meetings is very heavy, necessitating much careful preparation, for and consideration by the Board. Apart from this, a very large volume of correspondence and general business has passed through the office, some idea of its magnitude being conveyed by the fact that the correspondence received totalled 42,988 pieces of mail-matter, and that despatched was 77,702, a total of 1.20,690, representing an increase of about 17,500 over the previous year. The staff has worked well, and though at times rather shorthanded, by extra exertion the business has been dealt with satisfactorily. H. M. Skeet, Commissioner of Crown Lands.

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