G.—lo.

results achieved have amply justified the contention that this class of country is capable of being brought to a stage of production on a sound economic basis. A panoramic view of the scheme lands may be obtained from the slopes of Haparangi Mountain, and to-day there is presented conclusive evidence of the wisdom and foresight of the policy of development of these lands. The total area of the various subdivisions comprising the Horohoro scheme is 10,896 acres. The nature of the country, generally, is rolling to flat and covered to a depth of approximately 22 in. with a deposit of Taupo pumice ash, rhyolitic in composition. The rainfall is generous and fairly well distributed throughout the year. There is a wide range between summer and winter temperatures, and ground frosts are experienced between April and November. Pasture growth is affected by low temperatures up to the end of October. Horohoro, as the pioneer scheme on this class of country, has not only demonstrated the possibilities of pumice land development, but also the relation of land settlement to the health and social problems of the Maori people. During the year under review valuations of the various sections were made, and arrangements are in train for the finalization of tenures for individual settlers and terms of repayment of advances made. The establishment of a Native school on the scheme has made provision for the education of the children of the settlers, and particular attention is given to the study of agriculture. Detailed reports on the year's activities of the various subdivisions of the scheme are appended. The original subdivisions comprised Rongomaipapa and Ngati-Tuara only. Horohoro : Haparangi Plantation. This plantation lies to the south of the Atiamuri-Rotorua Road on the slopes of Haparangi Mountain. Approximately 750,000 trees have been planted on an area of 833 acres. The plantation was commenced in August, 1933, primarily as a measure to provide work for unemployed Maoris at Rot.orua and also to provide shelter for the Horohoro subdivisions. The trees are showing good growth and, apart from attention to the fire-breaks and roads, no other work has been necessary during the period under review. The trees comprise such varieties as Pinus, Murrayana, Radiata, Ponderosa, Macrocarpa, and Douglas fir, and these should ultimately provide a valuable asset to the Department. Horohoro : Kapenga No. 1. This subdivision adjoins Kapenga No. 2 at the foot of Haparangi Mountain, and comprises an area of 1,000 acres. Development operations were commenced in July last, and it is hoped eventually to settle up to twelve families on this scheme. It will be necessary for a water-supply system, either pumping or gravitation, to be installed before subdivision and settlement take place, but during the initial stages of development springs and creeks will provide ample water. A programme of work on internal roads will also require to be undertaken. Work carried out during the period under review consisted of 359 acres of clearing, 244 acres of grubbing, 206 acres of ploughing, cultivating, sowing in grass and top-dressing, 315 chains of fencing, and 26 chains of road formation. Horohoro : Kapenga No. 2. Kapenga No. 2 subdivision is located on the south side of the Rotorua-Atiamuri Road about seven miles from Rotorua, and adjoins the Tuhourangi scheme on the south and Kapenga No. 1 on the north. The area of this scheme is 400 acres, and development operations were commenced in June, 1933. It is hoped ultimately to subdivide the property into four dairy farms, but, as yet, no settlers are established. The pastures are hot yet of the required standard for dairying, but during the period under review 155 heifers and 172 bullocks were grazed on the scheme. There is a gravitation water-supply system from springs, but the higher areas under the mountain will require to be supplied by a pumping system. Work during the year was restricted to top-dressing the grassed areas. It is hoped that, after consolidation by beef cattle for a further season, dairying settlers will be established. Horohoro : Ngati-Tuara. This subdivision, which derives its name from that of the tribe owning the lands, is located on the main Atiamuri Road extending for a distance between the ten and twelve mile pegs and including the area between the road and the Horohoro Blufi. It adjoins the Rongomaipapa and Parekarangi schemes on the south and north-east respectively. The area of the lands under development is 2,125 acres. There are nineteen settlers established on the scheme, of whom seventeen are engaged in dairying, and their dependants number 108 adults and children. The lands occupied by settlers comprise 1,384 acres in grass and under cultivation, 36J acres of shelter belts, and 437J acres in natural state. In addition, an area of approximately 267 acres remains to be improved and allocated. The pastures are in good condition and steps are being taken to check the spreading of ragwort. Turnips for winter feed are under cultivation. Live-stock on the scheme as at the 31st March, 1937, comprised 538 dairy cows, 128 heifers, 138 calves, and 550 breeding ewes.

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