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Apart from three blocks —Brookstead, Mayfield, and Papanui —where the charges were fixed and settlers established during the year, all the blocks are being farmed by the Department pending completion of necessary development programmes. Generally the properties acquired have been in varying stages of deterioration and considerable regrassing programmes have been undertaken. On three blocks the watersupply, although sufficient or nearly so for the blocks when run as large holdings, are insufficient or badly distributed when the blocks are subdivided. This has entailed considerable investigation, which is now leading to a solution of the problem in each case. Shortage of building and fencing materials and the difficulty experienced by the Housing Department in inducing builders to submit tenders for erection of farm dwellings and other buildings has had the effect of delaying ultimate settlement of the blocks. The shortage of suitable accommodation has also precluded the employment to any great extent of Grade " A " ex-servicemen on a wage basis. It is anticipated that six blocks subdivided into fifteen units will be settled on fixed charges early in the forth-coming season. The settlement of a further five blocks aggregating fourteen units must await the erection of buildings. The remaining eight blocks, which will subdivide into thirty-one units, require further development to bring the component units up to a stage at which a man could reasonably be expected to farm them successfully. Arclif (Locality : Clinton). —This block is in three portions, as follows : Arthurton : This block of 2,893 acres reverted to the Crown in 1940. Extensive pasture renewal and new buildings have been completed and it is intended to offer this block for ballot as two units in July next. Clifton : This property of 1,462 acres was formerly portion of Clifton Settlement. It was taken over by this Department in 1941 from two settlers who abandoned, leaving the property in a bad state. Since then considerable pasture renewal has been effected. It is expected that modern farming methods will demonstrate that this area can be subdivided into three units on which lambs can be fattened successfully, good crops grown, and pastures held in good condition for longer periods than has been the case in the past. Taumata : This block of 453 acres reverted to the Crown in 1941. Extensive renewal of pasture is well in hand and the block should be ready for ballot in July, 1948. Awamangu (Locality : Balclutha). —Area, 2,945 acres. Acquired, 18th August, 1944, and 10th April, 1945. Subdivisions, five sheep-farms. This block comprises undulating to hilly country suitable for fat-lamb production and agriculture. The building programme and extensive pasture renewal are practically complete. It is proposed to ballot the sections in time for the forthcoming season. Berwick (Locality : Berwick). —Area, 393 acres. Acquired, 2nd December, 1946. Subdivisions, three dairy-farms. This block comprises rich flat on the Taieri Plain near Berwick. Provision of buildings and extension of water reticulation is in hand. Brock Hill (Locality : Oamaru). —Area, 672 acres. Acquired, 17th December, 1945. Subdivisions, two mixed farms. This block comprises ssod sheep and agricultural ■country in the Oamaru district. The building programme is nearing completion and both units will be offered at an early date. Brookstead (Locality : Duntroon). —Area, 831 acres. Acquired, 31st March, 1945. Subdivided, one sheep and one mixed farm. Development was completed in April and the two sections were allotted to Grade " A " ex-servicemen at fixed charges. Clinton (Locality : Clinton). —Area, 625 acres. Acquired, 3rd April, 1946. Subdivided, two sheep-farms. This block, acquired in April, 1946, comprises 625 acres of easy undulating country near Clinton. It is suitable for fat-lamb production and

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