C.—3.

2. Finance. Receipts. The total receipts from all sources (£133,790) show an increase of approximately £27,000 on the figures for the previous year, an indication that the sawmilling industry continues to share in the general improvement in economic conditions, and is the highest total recorded for eleven years. Details of the receipts under the various headings for the past four years are shown hereunder : —

Payments. The net expenditure for the year shows an increase of £103,000 on that of the previous year, the greater part of which (£79,000) is accounted for in the afforestation section. This is due to the fact that in the previous year the employment of casual labour on planting, &c., was wholly financed from the Employment Promotion Fund, whereas for the year under review, with the exception of the first two months of the year, payment was made from the State Forest Account and a subsidy of 40 per cent, for single men and 60 per cent, for married men recovered from the Employment Promotion Fund. The other increases are —Salaries, £10,000, chiefly due to the restoration of cuts ; National Endowment Account and local-body payments, £11,000, due to the increase in revenue ; and management of indigenous forests, £3,000, due to increased roading and other activities in kauri forests.

3. Honorary Forest Rangers. A record of achievement in the protection of State forests from damage by fire and vandalism would be incomplete without appreciative reference to the support of the 161 honorary forest rangers holding appointment under the Forests Act, 1921-22. The voluntary assistance of this group is the only protective link of many State forests remotely situated from damage by fire and vandalism, and not the least of many important duties performed is the regulation of burning within " fire districts " during seasons when burning without a written permit of a forest officer is an offence punishable by a fine of £50 or three months' imprisonment. The guardianship of some State forests would, by reason of their isolation, be quite inadequate were it not for the supervision given by local honorary forest rangers, and to one and all I extend my grateful thanks.

18

Item. 1936-37. 1935-36. 1934-35. 1933-34. Indigenous-forests receipts — £ £ £ £ Timber-sales .. .. .. .. 91,980 74,828 47,179 31,017 Timber royalties and trespass .. .. 6,257 5,006 5,449 3,164 Leases, grazing .. .. .. 1,692 1,757 1,646 1,816 Sawmill-sites, industrial, &c. .. .. 705 957 1,417 1,348 Miscellaneous.. .. .. .. 4,252 2,844 2,125 2,206 National Endowment Account allocation .. 21,807 15,712 10,990 6,612 Nurseries and plantations — Ttpoq Qrirl aopfiQ l Firewood and poles y 7,097 5,874 4,094 6,546 Miscellaneous .. .. .. ■ ■ J Totals 133,790 106,978 72,900 52,709

Item. 1936-37. 1935-36. 1934-35. 1933-34. Fixed charges and staff salaries— £ £ £ £ Interest and expenses of raising loans .. 801 525 172 269 Stafi salaries 51,616 41,374 34,155 32,901 Allocation of revenue— National Endowment Account .. .. 10,934 7,117 3,436 3,893 Local-body payments, &c. .. .. 16,739 9,243 5,903 3,508 Management, establishment, and development — Indigenous forests .. .. .. 17,863 14,763 11,735 8,817 Fire-fighting equipment and prevention .. 415 415 805 820 Educational: Reference library, &c. .. 194 260 445 120 Research and experimental equipment, &c. | 567 836 528 1,022 Afforestation: Nurseries and plantations .. 139,761 60,642 59,136 54,292 Land-purchase .. .. ■■ •• 70 .. 10,542 Miscellaneous .. .. .. .. 84 500 343 202 Totals .. .. .. 238,974 135,745 116,658 116,386