0.—3

4

During the year 379,023 acres of forest lands were placed under the jurisdiction of the forest authority. As a result of certain forest exploratory reconnaissances made during the year an area of. Crown forests (classified, as commercial and protection) amounting to 2,614,000 acres has been located which is suitable for forestry management. These areas are situated in the Rotorua region, Urewera district, throughout the central Wellington massif, in the Nelson Province, the WaiauCanterbury drainage territory, and throughout mountainous Southland. Proposals regarding their' dedication as State forests in certain cases are under consideration by the present administering agency, the Lands and Survey Department. The National Inventory of Timber Resources. Facts, not opinions, regarding the extent, area, and distribution of the Dominion's timber and wood resources arc necessary upon which to base a permanent programme of timber supply and conservation. Recognizing the need of an authentic inventory or stock-survey of the available supply of timber, the Service, through its forest-rangers staff, began simultaneously last year in all forest regions the systematic record of all standing timber, bushes, plantation forests, and plantations, whether owned by the State, Natives, or private individuals. This most important project has already revealed the existence of large masses of merchantable timber bodies in out-of-the-way corners. One definite forecast already clearly indicated is the widespread distribution and exceptional yield of the beech group. The forest-inventory work is bringing clearly to light the intimate relation between agricultural settlement, water-conservation, and stream-flow. Tn the Rotorua region, for example, it has been found that 95 per cent, of the forest-bearing land is unfitted for settlement, and a very large proportion of these forest lands may be regarded as absolutely necessary for soil-protective purposes. Successful settlement on the Mamaku plateau and. in the Waioeka watershed has been found impossible, and many deserted and abandoned homesteads stand to-day as mute evidence. The Urewera region, belonging as it does to the mother backbone of the North Island, stands as guard and protector over the fertility of the rich, black Rangitaiki lands. The Urewera country is the last stronghold —the source of life and the heart of our North Island, forests. It should be conserved and managed in perpetuity as a great timber-producing centre. Forest Demarcation, Boundary Surveys, &c. The pressure of more urgent technical work, such as forest reconnaissance, forest surveys, cruises, and protection, has not permitted of the attention to permanent forest-boundary demarcation that this work deserves. During the year forty-four miles of permanent forest boundaries were surveyed, redefined, and marked ; sixteen miles of surveyed base-lines were established; forty miles of track were constructed ; and several miles of fire-break were cleared in. the kauri, forest and plantations. A total of over two hundred surveys, land examinations, and reconnaissances was performed during the year. Trounson Kauri Park. The ceremony of title-transfer from Mr. Trounson to the Crown, as represented by His Excellency the Governor-General, 'Lord Jellicoe, was fulfilled during the year. A programme of park-improvement, efficient forest-fire prevention, and administration was formulated and put into operation by the managing authority. Improved forest sanitary conditions arc being effected by the removal of menacing dead tree-stubs, the clearing of a considerable zoneage of fire-belt, &c. A resident forest guard has been appointed to police and patrol the area. The permanent improvements, such as ranger stations, telephone-line, protective tree-belt, &c, now under way will in a few years make this wonderful monument one of the most interesting of the natural scenic beauties of New Zealand. 2. FINANCE. From all sources of revenue the receipt of moneys paid into the State Forests Account during the year amounted to £30,836 7s. 5d., of which amount the nurseries and plantations contributed £4,073 13s. 9d. The total receipts show a very satisfactory increase over the previous year of £11,139 2s. 5d., or 56-5 per cent., and this in spite of the timber-market collapse both in New Zealand and in Australia. State Forest Service expenditure for the fiscal year ended 31st March, 1922, was as follows : —

Annual State Forest Service Expenditures. (See Annexure for details.)

Fiscal tr cm Item. 31st March, 1922. 31st March, 1921. A. Salaries B. Management and development of the 7,181,000 acres of State forests C. Forest-fire prevention and patrol (indigenous) D. Education : Reference library, publications, &c. B. Forest research . . F. Afforestation, plantations, nurseries, and general G. Acquisition of indigenous forests H. Grants and miscellaneous .. £ 31,194 17,552 1,035 ■ 848 999 47.371 7,173 1,410 £ 17,286 11,104 853 323 49,903 82 . Totals 107,582 79,551