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were planted on new area, and 52,825 were used for replacing failures in former plantings, mainly on No. I plantation. Only a small portion of No. II plantation was dealt with in regard to the replanting of failures, as time and labour could not be found for the purpose. It is, however, intended to have this work put through during the coming season. The area planted during the past season is 244 acres, making a total area of 1,964 acres now under forest, containing 5,346,871 trees. A further area of 1,060 acres was acquired for afforestation purposes. Of this block, an area of about 350 acres was securely enclosed by a substantial netting fence, 182 chains in length, which was erected by contract at a labour-cost of 4s. per chain. The greater part of the enclosed area was covered by a thick growth of manuka, which had to be cut down and burned before pitting operations could be commenced. Ihis work was entirely performed by prison labour, an excellent job being made of it. Before the commencement of pitting fire-breaks and roads were marked off, a chain-wide fire-break cutting the area in halves, and a half-chain break following the fence-line, the roads following the fire-breaks where convenient. A paddock of 20 acres was reserved for cropping purposes ; this was ploughed, and will be allowed to fallow before the winter. Red deer again made their appearance in the planted areas during the winter, and did a good deal of damage to larch. One was shot inside the enclosure. The growth of manuka and tussock, which encumbered each side of the main road bordering the plantations and was such a menace as regards fire, was cleared and burned, thus enabling the ploughing of fire-lines right up to water-tables of road. Culverts have been formed where required, and the formation of necessary roads was carried on in various parts of the plantation. Pits to the number of 358,487 are now available for the season's planting. Prison Labour. —The bulk of the work has been done by prison labour. The number of prisoners available for forestry operations has exceeded that of other years, the daily average employed being 1522 men. The total value of work done for the year was .£1,127 os. lOd. The thanks of the Department are due to the Prisons staff for their efforts in making the work a success. The following are the values and particulars in brief of the work for the year : Pitting, 483,033, £362 ss. 6d.; tree-planting, 643,865, £334 14s. 5d.; clearing, 290 acres, £290 19s. sd.j general upkeep, £41 165.; horse-feed, £5 11s. 3d.; fencing, £13 10s.; formation, £78 14s. 3d. Free Labour. —Free labour was employed partly by contract and partly by day labour, the daily average employed throughout the year being 5\35 men. A total of 109,650 pits were opened for the year, at a cost of 19s. per thousand, the whole of the work being done by contract. Trees to the number of 21,225 were planted by contract, at a total cost of £7 19s. 3d. Cartage of trees to plantations cost £10 14s. 3d. An area of 13 acres was cleared of scrub, at a cost of £13 19s. 6d. General maintenance work was a large item of expenditure during the year, the total labour-cost being £459 17s. 4d. Under this expenditure are included the following works : Opening blank pits and replanting failures; grubbing out briars, gorse, &c.; cleaning foreign growth from around young trees; pruning and cutting-out •of double leaders, almost the whole of the larch area being gone over in this respect; destroying hares; ploughing fifteen miles of fire-breaks. . Part of the formation of roads was also done by free labour. A total length of 182 chains of fencing was erected, at a cost of 4s. per chain. An expenditure of £12 19s. 6d. was also incurred in harvesting operations, ploughing ground for oat-crop, and carting chaff from Culverden. Schedule 11. — Statement of Expenditure. „. , For Year. To Date. Planting operations and maintenance — £ s. d. £ s. d. Tree-planting ... ... ... 342 13 8 3,057 11 8 Pitting ... ... ... ... 466 2 8 4,493 9 7 Clearing ... ... ... ... 304 18 11 1,617 6 9 Cartage of trees ... ... ... 10 14 3 89 11 4 General upkeep of plantation ... 501 13 4 2,972 6 2 General repairs ... ... ... 3 16 17 13 10 Horse-feed... ... * ... ... 19 10 5 173 18 5 Permanent works — Fencing ... ... ... ... 193 3 5 1,316 18 8 Formation... ... ... ... 124 2 2 1,209 10 8 Buildings ... ... ... 1 11 5 750 11 1 Stock, implements, &c.—Tools, implements 51 14 2 466 4 8 Supervision and clerical— Salaries — Supervision of free labour ... 90 0 0 866 14 4 ~ prison labour ... 171 0 6 603 17 2 Superintending Nurseryman's proportion and clerical assistance 46 0 0 418 7 0 £2,326 6 5 £18,054 1 4 Estimated value of prison labour (apportioned in above items) ...£1,127 0 10 £6,381 4 8 Actual expenditure ... ... ...£1,199 5 7 £11,672 16 8

.B—C. 18.