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white-pine all showed increases, the increase in the last mentioned being a reflection of the difficulty in disposing of the lower grades on the domestic market. However, this increase in the export of indigenous species is purely temporary, for within a year or two export of indigenous timber is expected to be down to an insignificant level. During 1948, exports reached their highest level since 1936, and it is expected that a very important upward movement will develop during the next few years. A graph in the Appendix shows the movement of exports and imports annually since 1885, with exports projected to show the rapid rise in outward shipments which will follow the wider development of the exotic forests. This graph not only shows the high levels reached by the timber export trade in past years, but also shows that within a few years exports are likely to be as much as 50 per cent, above the previous peak year. Exports of exotic timber are inspected both in the mill yard and at the ship's side for the presence of harmful insects, sapstain, and incipient decay, and also to check moisture content and over-all general appearance, including square end docking and freedom from bark. Exports of white-pine are also checked to ensure that only permitted grades are exported. Long-term statistics of exports by species are given in Appendices 111 and IV. Trade Relations (1) Timber Production Advisory Committee. —The Timber Production Advisory Committee was originally constituted under Emergency Regulations, but by the Timber Production Advisory Committee Regulations 1949 the Committee becomes a permanent body with the same functions as under the Emergency Regulations. The Committee held three meetings during the year, the membership remaining unchanged. Among the matters considered by the Committee were immigration, both from Great Britain and of displaced persons, ambulance services in country districts, and problems of transport. The Committee continued to advise the State Advances Corporation concerning the Sawmill Housing Scheme, and assisted with the collection of the sawmill housing levy. (2) Timber Control.—The Timber Control Emergency Regulations 1939 were revoked in December, 1948, and were replaced by the Timber Regulations 1949. With the revocation of the Timber Emergency Regulations, the office of Timber Controller was abolished and control over sales of standing timber was discontinued. Control over the sale of heart and medium kauri, and white-pine, was reimposed by the Timber Regulations 1949. (3) Liaison and Advisory Services. —The principal activities under this heading during the past year were — {a) Investigation of sawmillers' applications for houses under the Sawmill Housing Scheme, and submission of reports to the Timber Production Advisory Committee. (b) Investigations in connection with the rationing of butter and petrol; and furnishing of recommendations to the Oil and Food Controllers. (c) Assistance to the timber industry in regard to items of essential equipment in short supply. (d) Investigations on behalf of the Rehabilitation Department in the case of applications for rehabilitation assistance from ex-servicemen in the sawmilling industrv.

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