a.—io.

In further consideration of this production it is mentioned that during the 1935-36 season 70 cows were milked, while for the 1936-37 season the tally was 75 cows. The results from the sheep, run cattle, and pigs have been poor, due no doubt to the climatic conditions experienced. A recent report states that there are 500 acres in grass, 150 acres of swamp, 70 acres of poor pipe-clay country, and 50 acres low-lying in rough feed. The live-stock tally at 31st March, 1937, was 289 ewes, 71 cows, 31 other dairy stock, and 54 run cattle. The work for the past year is included in the Bay of Islands scheme figures. Panguru Base Farm. This farm, containing 302 acres of freehold and leasehold land which was originally in thick bush, was acquired for the purpose of a base for the grazing and distribution of the stock intended for units during the progress of development. This function has now been fulfilled, and the question of subdivision and allocation of the area to individual settlers is under review. Situated adjacent to the Panguru Settlement, it has served Panguru and Pawarenga developmental areas. Comprising hilly, but workable, land of good quality, the area has shown a tendency in recent years, due to unfavourable weather conditions, to slip, and fencing has consequently been a difficult problem. During the winter months there was ample feed available, and the stock carried came off in good condition ; the pastures have been top-dressed with basic slag and have benefited thereby ; extensive fencing repairs were necessary during the year owing to slips ; and a manure-shed was constructed, which has proved invaluable. The services of a settler from the Panguru area were obtained to look after the property. It is proposed to lay on water from the Motuti water-supply which is now being installed, and one reservoir for the supply will be situated on the farm. The pastures on Panguru are in first-class condition. The operations for the year are included in the Hokianga scheme figures, and the live-stock tally at 31st March, 1937, was as follows : 3 steers, 2 bulls, 2 calves, 3 cows, 15 heifers, 287 ewes, 7 rams, and 4 wethers. Pouto. Although gazetted under the Kaipara development scheme, this area is actually an extensive separate scheme. The Pouto lands are situated on the Kaipara Peninsula, and the development portion embraces an area of 1,400 acres out of a total of 9,000 acres, a large portion of which should respond to cultivation, and thus provide an ideal area for the establishment of a colony of Maori farmers. Access is by a formed road, a distance of forty miles from Dargaville, but the road is only passable to stock. At present access is obtained by a steamer from Helensville or Dargaville to Pouto. The majority of the owners of the Pouto area are members of the Kena family, who, under the leadership of Paraone Kena, now deceased, carried out some very arduous and valuable work in the development of their lands at a minimum of cost. These people originally lived at the Pouto Village, which is some ten miles from the scheme, and before the inception of the present development activities they subsisted on garden and fish supplies. The scheme is known locally as " Bangitane." At present it is sparsely populated and presents ample scope for the migration of Natives from overpopulated areas in other parts of the northern districts, the owners being agreeable to such a policy. Since the inception of the scheme the workers have been living in sack and iron whares, and despite these hardships the children are of a fine healthy type. It is proposed during this next season to erect six cottages for the owners and twelve hutments for workers who will be introduced from other parts. It is fitting in this report to pay tribute to the work done by Paraone Kena, who, by indomitable courage and foresight, has handed down his influence to the younger people, who are undertaking the development of their lands in the same manner as when he led them. Losses among the stocii have been very slight, despite the fact that last season was one of the worst in North Auckland for hoggets. The stock are going into the winter in excellent condition, and lambing will be commencing in July. The following stock was carried at the 31st March, 1937 : 397 ewes, 249 lambs, 113 wethers, 14 working-bullocks, and 38 run cattle. There are almost 2,300 acres ring-fenced, of which 400 acres are in good grass,, and in addition there are 500 acres to 600 acres in good rough feed, the condition of the stock indicating the value of these grazing facilities. Some 350 acres of first-class swamp is being treated, and this is draining out well, and the next stage —consolidation of the pasture —will be carried out in the coming season with light cattle, followed at a later date by heavier stock. An investigation of the swamp after a recent flood revealed that the drainage has been well laid out and is capable of meeting the flow from any floods which may occur. The work during the year, from which fifteen men with fifty dependants received assistance, is included in the Kaipara scheme figure. The prospects for Pouto as a farming venture are very bright, but, although the pasture land will be suitable for dairying, it is preferable to run the block as a station for several years. It is the intention to build up a Bomney flock and a Hereford line of cattle, all suitable stock being retained and surplus requirements being sold ofl.

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