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a.—io,

IKAROA DISTRICT, With the exception of the Matakarapa Block, the two schemes in this district are concerned only with the provision of assistance to Maori farmers. Manawatu. Five unit holdings are comprised in this scheme, which is situated in the Manawatu district, and embraces an area of 441 acres, together with the Matakarapa Block of 368 acres at Foxton. During the year one farmer reached the stage where he required no further assistance, while another individual holding has been established. The live-stock belonging to units is as follows : 79 cows, 4 bulls, 16 heifers and weaners, and 5 horses. The butterfat production was 12,706 lb. —graded as finest, 7,813 lb. ; first, 4,807 lb. ; second, 86 lb. In regard to the Matakarapa Block, 150 acres are now grassed and the balance is swamp, sandhills, and flats in Native grasses. The live-stock carried at the 31st March was 107 cows, 15 heifers and calves, 3 horses, and 9 pigs. This block is still under development, and has not yet reached the stage where units can be established —the cows at present being milked by two share milkers who are working satisfactorily. The butterfat returns for the year under review were —finest, 12,283 lb. ; first, 12,252 lb. ; second, 92 lb. ; all of which represent a total of 13,627 lb. Provision has been made for three units, and the necessary buildings have been erected. Since development activity has commenced, the land has gradually subsided and drainage facilities are not entirely satisfactory. It may ultimately be necessary to install a drainage pump. Unemployment among the Maoris in the Manawatu district has been acute, and unemployment contracts to the extent of £788 were arranged on scheme lands in the course of the past year. Expenditure for the year, exclusive of unemployment money, was £660, and receipts from milk cheques and sale of stock were £570. At the 31st March, 1936, the amount owing by the scheme was —principal, £2,906 4s. 5d., and interest, £3 14s. sd. Heretaunga. This is a " blanket " scheme comprising sixteen holdings of an area of approximately 2,000 acres, and supporting ninety-five dependants. The farms are scattered over a wide area in Hawke's Bay, although the majority are within easy reach of Hastings. There is very little work of a developmental nature necessary, as most of the holdings are cleared and grassed, but during the year, in addition to seasonal work, 80 chains of new drain were completed, 110 chains of fences were repaired, and one new house built. Four unit farmers have this year repaid their total advances, one of these settlers withdrawing from the scheme. Live-stock tallies (held by units) are as follows : 255 cows, 59 heifers and yearlings, 15 bulls, and 18 horses. The total butterfat return for the year was 38,272 lb., being graded— finest, 16,228 lb. ; first, 20,501 lb. ; and second, 1,543 lb. All the holdings are practically fully developed and the carrying-capacity cannot greatly increase, but production should increase gradually with herd improvement. The expenditure for the year, exclusive of unemployment contracts, was £217 ; and receipts, principally from cream cheques, amounted to £807. The amount owing by the scheme at 31st March, 1936, was —principal, £1,702 7s. 7d., and interest, £25 16s. Bd. SOUTH ISLAND DISTRICT. In the South Island the three development schemes in operation are widely diverse in character and are separated by the length of the Island, two schemes being at the northern end and one at the extreme south. One of the most interesting of all the development schemes is that at Wairau, near Blenheim. Wairau. There are about 840 acres gazetted in this scheme. With the dual purposes of recouping the Department's expenditure and breaking in the formerly flooded areas which were covered in flax and raupo, the local Natives have been employed on an extensive programme of swamp ploughing and cultivating in preparation for pea cropping. The land is bisected by the Roberts drain, which is banked on both sides. Two flood pumps discharging into the Roberts drain have been installed and connected with the power-lines, and are functioning satisfactorily.

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