8.—6

VIII

wheat, beef, hemp, and a few minor items show advances in both quantity and value, while butter, cheese, sheep-skins, and tallow show increases in value notwithstanding the reduction in the amount exported. The principal reasons for these decreases, which in most cases are not large, are, firstly, the above-mentioned shortage of shipping-space ; and, secondly, the diminution in the demand from Australia for oats, potatoes, chaff, peas, and beans, which were required in the preceding year owing to the drought which affected local production. It is a matter of congratulation that the agricultural exports do not show any appreciable decrease that may be fairly attributed to the strain placed upon the rural districts by the shortage of labour owing to the war. The world's demand for our wool, meat, dairy-produce, hides, skins, tallow, hemp, fruit, and other products seems certain to be more than maintained, and, provided ships are available for the transport of our output, increased production may be anticipated. STATE FORESTS. To assist forestry operations power was given in last year's Finance Act to raise £50,000, of which £10,000 was actually borrowed during the year. This sum, together with £4,250 contributed out of the Consolidated Fund and royalties, enabled the Lands Department to meet expenditure amounting to £27,810, being £2,503 less than the expenditure of the previous year. As all the plantable land at Hanmer was filled it became necessary to find more land in Canterbury suitable for tree-planting. An area of 6,593 acres of the poor part of the Balmoral Estate was therefore purchased. As the land is only sixty-two miles from Christchurch, and is on the railway, it is in a very favourable position for profitable timber-production, and can readily be supplied with young trees from the nursery at Hanmer. Owing to the continuance of the war, proposals for the expansion of afforestation could not be given effect to this year. However, when the financial pressure is relieved it is proposed to extend this important work. As a result of the conditions produced by the war the revenue derived from timber has fallen somewhat. The scheme of State assistance in connection with tree-planting by farmers has proved very satisfactory, and the demand for trees for farm plantations and shelter-belts is increasing. LAND FOR SETTLEMENTS. The operations of the Department have been confined principally to the purchase of land for discharged soldiers. The area purchased amounts to 50,140 acres, valued at £564,110. The offers received have been based upon the high values now ruling for all produce, therefore it has been a hard matter to secure lands except on such a basis. SWAMP-LAND RECLAMATION. The reclamation of Hauraki and Rangitaiki Plains has been steadily carried on during the past year, with most beneficial results. Owing, however, to the exigencies of the war it has not been possible to obtain all the labour or machinery required, and this has prevented the opening of new areas for selection on the Hauraki Plains. Under the provisions of the Swamp Drainage Act, 1915, reclamation-work has been started in connection with Poukawa, Kaitaia, and Waihi areas. Suitable labour has been difficult to obtain for the reasons above stated ; and the dredges ordered from England have not as yet been delivered, owing to the demands on the contractors by the Imperial Government for war material. It is intended from time to time to bring other areas under the provisions of this general Act, as the success attending present undertakings fully warrants the development of the swamp lands of the Dominion,