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The majority of sawmillers have continued to work extended hours up to forty-eight hours per week, the average being approximately forty-three hours per week ; and the extra cost involved by the payment of overtime has again been subsidized from the Consolidated Fund, vote " Stabilization," on the same basis as before —i.e., 80 per cent, of the extra cost of overtime at time and a half rates worked during the week and on Saturday mornings, and 100 per cent, of the extra cost of overtime at double rates worked on Saturday afternoons. The Forest Service continued to check all claims for subsidies received from the industry, and during the year has passed for payment claims totalling £117,281 (£98,166). The estimated additional production achieved as the result of this subsidy is 28,500,000 board feet (25,000,000). 102. Petrol and Tire Conservation. —Owing to the sale of petrol again being governed by regulation, the State Forest Service is once more acting in an advisory capacity to the Commissioner of Transport and the Oil Fuel Controller in the allocation of supplies to the timber industry. The control over tires was removed during the year and consequently the Forest Service is no longer required to give assistance in allocation. 103. Essential Supplies.—On account of the shortage of essential supplies as they affect the timber industry, the Timber Controller, by arrangement with the merchants, has instituted a control over the sale of circular saws, gang-saw blades, band saws, and twoman cross-cut saws. This action was deemed advisable to ensure that the small stocks coming to hand would be directed to operations where they would produce the maximum quantity of timber. The situation is being closely watched, and should supplies improve, the matter of continuing the control will be reviewed in the light of the existing and forward positions. The Forest Service has also served the industry usefully by arranging for the supply of other materials urgently needed. 104. Timber Purchases for Defence Works. —The reconciliation of the Timber Controller's records with those of the contractors is the only work remaining to be done under this heading, and details are complete except in respect of one contract. 105. Timber Control Notices.—Mr. A. R. Entrican, Director of Forestry, relinquished the appointment as Timber Controller during the year and was succeeded by Mr. W. C. Ward, Inspector in Charge, Marketing Division, State Forest Service, Wellington. There was no amendment to existing Timber Control Notices and no new notice was issued during the period under review. Timber Control Notices are subsidiary to and authorized by the Timber Emergency Regulations 1939, which are read together and deemed part of the Supply Control Emergency Regulations 1939. Notices at present in force are as follows :

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Title. Subject. The Second-hand Fruit-case Control Notice 1946 Timber Control Notice No. 35 Timber Control Notice No. 36 Timber Control Notice No. 43 Timber Control Notice No. 53 Timber Control Notice No. 54 Timber Control Notice No. 56 Timber Control Notice No. 59 Statutory Regulations, Serial Number 1946/159 Gazette, 1942, p. 609 Gazette, 1942, p. 609 Gazette, 1942, p. 952 Gazette, 1943, p. 352 Gazette, 1943, p. 352 Gazette, 1944, p. 622 Gazette, 1946, p. 1004 Licensing of persons to deal in used fruit-cases. Names under which beech timber may be sold. Use and importation of Australian hardwoods. Distribution of timber produced south of Te Kuiti. Use and sale of white-pine timber. Only clause 6 now in force. Operators of box-factories required to notify Timber Controller within a week after commencing. Grading and classifying of rimu, miro, matai, and totara building timber. Use and sale of kauri timber.