G.—lo.

fallow until spring". Fencing has been commenced, and lour miles were completed as at the 31st March. River protection and systematic groyning and willowing of one mile on the Rangitaiki and Whirinaki Rivers has been completed. This river protection work is already proving invaluable, and rich alluvial flats are being saved from erosion. Further protection work will be undertaken as opportunity offers. A large store-shed has been erected. A working foreman has been appointed, and an average of thirty men have been employed to date, all these being members of the Ngatimanawa tribe, which is thereby dependent on the scheme. The development work to be undertaken will absorb all available workers. Okahu. Gazetted under the Tikitere scheme, this area of 180 acres of particularly good land, situated on the Rotorua side of the Ohau Channel, is used for grazing purposes. It is one of the best paddocks in the district. On 160 acres there have been wintered regularly during the past few seasons approximately 800 ewes, and on the average 90 per cent, of the lambs go off fat. It is interesting to note that half of this area was never ploughed, the pastures having been consolidated with heavy cattle. The cash receipts are included in Tikitere scheme figures. Okataina. Lying to the eastward of the road between Lake Rotoiti and Tarawera, this property of 13,847 acres was gazetted in May, 1933, as a post-supply source. It contained excellent totara. During the year, 29,372 posts, 89,248 battens, and 412 strainers were split, the timber being used on the Rotorua Central and Bay of Plenty schemes. A small quantity of posts was supplied to the Te Ivuiti district. It is estimated that the block will be worked out during the ensuing year. Okere. This scheme comprises an area of 6,054 acres, of which 1,950 acres are in grass. It is situated on both sides of the Rotorua-Tauranga Road from the seven-mile peg to the seventeen-mile peg, and adjoins the Taheke scheme. It is run as a sheep grazing proposition, but it will ultimately be subdivided into small dairying and sheep farms. The tally of live-stock wintered on the property was 60 bullocks and 2,800 ewes. The natural increase from sheep was 2,900. Stock sales comprised 600 fat lambs, 1,000 culled ewe lambs, 1,000 shorn store wether lambs, and 300 top ewe lambs were retained. The wool-clip comprised 60 bales, or 16,201 lb. Up to the present the scheme, together with Taheke block, has employed all the unemployed Natives of the Mourea and adjacent districts. There are 3,000 acres of good undulating tawa bush with practically no milling-timber on it. It is undoubtedly one of the best bush blocks in the district, is well watered, and covered with a layer of " Rotomahana mud." It is particularly healthy and should be an excellent block for breeding purposes. The work carried out during the year under review included 396 acres of bushfelling and clearing ; the grubbing, ploughing, discing, harrowing, and sowing in grass of 252 acres ; the erection of five miles of fences, with repairs to 188 chains ; the formation of 60 chains of roads, with repairs to 102 chains ; while, in addition, the grassed areas were top-dressed and 12,500 battens were split for scheme fences. The cash receipts for the year comprised wool, £1,286 ; sheep, £817 ; and sundries, £61 ; while a further £1,765 was received after 31st March in respect of sheep and cattle sales. Oruanui. This block is situated thirteen miles from Taupo, and is operated as a post-splitting proposition on license from the State Forest Department. Owing to shortage of labour, the output has not been sufficient to meet the requirements of the various districts, but late in March, 1937, five additional men were obtained for splitting, and the supply of posts has been correspondingly increased. The Forestry Department has undertaken to make available to this Department sufficient areas to meet the requirements of the development schemes. A supply is now being forwarded to the Te Kuiti district, 12,850 posts, 600 battens, and 117 strainers having been split during the past year. Parekarangi. Situated on the northern side of the Rotorua-Atiamuri Road, six miles from Rotorua, and constituting the connecting link between the Ngati-Tuara scheme on the south and Peka and Tihiotonga on the north, this property contains 2,868 acres. Although it actually could be considered an extension of Horohoro, this area was gazetted separately in 1931, due to the fact that it is owned by a different branch of the Tuhourangi subtribe of Te Arawa. The country is undulating in nature with steep faces, comprising ploughable, well watered land. Consequent upon the strong growth of fern, heavy stocking was necessary to consolidate the loose soils and control ragwort. The pastures are steadily improving, and, although ragwort is still prevalent, the establishment of further settlers with heir complement of stock is to be pursued as far as possible. t

35