GK—lO.

Rotoiti. Containing some 4,912 acres of good bush country, rough in parts but ideal for sheep and cattle, this scheme is situated on the shores of the lake from which it derives its name. Good progress was made during the year in the development work, which embraced 225 acres of bushfelling, 148 acres of clearing, the splitting of 32,150 battens, the erection of 327 chains of new fencing, and the formation of 32 chains of roading. The whole of the established pasture was top-dressed, and a further 420 acres sown down. The old wool-shed was converted into an implement and manure shed, while a new wool-shed and a sheep-dip were constructed. One further cottage was erected. The stock has done well, and at the end of the year the scheme was carrying 2,075 breedingewes, 2,910 wethers, and 527 run cattle. The wool-clip was seventy-seven bales. This scheme provided employment for twelve men and supported in all nineteen adults and twenty-two children. Taheke. Comprising some 9,081 acres on the main Rotorua-Tauranga Road to the north of the Okere Falls, this property is mostly hilly, but is good, healthy bush country and well suited for grazing sheep and cattle. It was badly infested with ragwort, but this is now being controlled by judicious sheep-grazing. The established pasture, comprising 2,015 acres, was all top-dressed, and a further 250 acres sown down, 41 acres of bush were felled, 123 chains of new fencing erected, 24 chains of new drains dug, 44 chains of new roads laid off, and three cottages were erected. The stock being carried at the end of the year was 2,467 breeding-ewes, 3,145 dry sheep, and 380 run cattle. One settler is established as a sheep-farmer on a portion of the area, and there are sixteen workers, or, in all, twenty-seven adults and forty-two children, dependent on the scheme. Okere. Lying between the Ohau Channel and the Okere Falls, to the west of the main RotoruaWhakatane Road, this scheme of 6,054 acres comprises country similar in type to the Taheke scheme, being hilly and bush covered, but nevertheless good sheep and cattle land. Ewes and lambs do particularly well on this country, and the wool-clips are generally above the average in weight and quality. The block is well watered. There is one settler on a portion of this scheme, and he is dairy-farming, and in addition running some 200 ewes. During the year 834 lambs, 1,392 wethers, 322 ewes, and 105 bales (39,855 lb.) of wool were sold. The stock carried at the 31st March was 2,622 breeding-ewes, 3,421 dry sheep, 618 run cattle, and 48 milking-cows. The work completed this past year was as follows : 654 acres of bushfelling, 400 acres of clearing and stumping, 100 acres of ploughing, 698 acres of grassing, 57 acres sown in turnips, 89 chains of new fencing, 152 chains of new roads, and the whole 2,000 acres of established pasture were top-dressed. The bushfelling was done by twenty-four Ngapuhi Maoris from North Auckland who were brought down to alleviate the unemployment problem in the North. The store-shed on the scheme was transferred to a more suitable site and rebuilt as an up-to-date shearing-shed with good sheep-yards adjoining. Some thirty-nine workers were engaged on the property and, in all, some ninety-five adults and seventy children were dependent on the work. There is scope for much further development in this area. Oruanui. On this block post-splitting operations have been continued under license from the State Forest Service. In the early portion of the year the output was restricted owing to the necessity of having to thoroughly clean up that portion then held under license before a further block would be made available. This entailed a loss of time by the splitters, and resulted in a lower rate of production. In November, 1937, a further block (Pakuri B) was made available, and an increased output was then obtained. During the year 43,456 posts, 727 strainers, and 8,930 battens were produced, in addition to 5 bridge stringers, 164 wool-shed blocks, and 948 lineal feet of house blocks. The posts and strainers have been distributed between the Waikato-Maniapoto district and the various schemes in the Waiariki district. The supply, however, has proved inadequate to meet the demands for fencing material, and every endeavour has been made to increase the number of splitters at the bush. In July, 1937, seven splitters from North Auckland augmented the workers in this bush. At the 31st March, 1938, there were twelve men employed at Oruanui in addition to the foreman, and these workers support twenty-two dependants.

6—G. 10.

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