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Hawke's Bay. (W. F. Harsh, Commissioner of Crown Lands.) As regards that portion of Hawke's Bay District extending from the Mohaka River on the north to Woodville on the south, all the milling-timber is practically cut out. There are only four mills now remaining—viz., R. Holt and Son, Puketitiri; Bull Bros., " Henley," Patoka; Burgess, Ongaonga (small plant), and Tangarewa (small plant) also run by Burgess. The mills are not working constantly, and the output for the year may be put down at 500,000 ft. of rimu and 100,000 ft. of white-pine, being an average monthly output of r>o.ooo ft. Prioes .: 0.8. rimu, 16s. 6d.; clean heart, 30s. T.otara, clean heart, 40s. White-pine at rates for rimu. Owing to the present condition of the trade, supplies may last another four to five years. I mil unable to obtain other than a rough estimate. If the trade became brisk after the war supplies might be exhausted in a shorter period. Poplar from wind-breaks is now being used for butter-boxes, and is taking the place of white-pine to some extent; and at the present time rata, matai, and maire are of considerable commercial value as firewood. There have been practically no fires, owing to the wet seasons experienced in this district. Sawmilling as an industry is fast becoming a feature of the past, and at the present time there is very little business doing in the trade. As regards the northern portion of this district, it may be said that the general conditions of the milling industry have been very similar to last year; but the sales arc easing off now for all timbers except white-pine, for which there is a good demand for export. The demand for timber lias been steady. Although there is practically nothing doing in the way of house-construction in town, there have been quite a number of wool-stores erected, as well as extra storage-room for the various freezing-works. There has also been a fairly good country trade; but the prospects for the sale of timber locally during the winter are not too bright, as, owing to the continuous wet weather, the carting on the country roads is uncertain. As the majority of the men employed are married men and in the Second Division, the war has not yet affected the labour question seriously. On account of the very high price paid for labour and all other milling requisites,,especially wire rope for log-hauling purposes, the sawmillers advanced the price of timber about 10 per cent, from the Ist July, 1917. The wages now paid are from 13s. per diem for mill hands to 16s. for bushmen, being an average of close on 15s. all round. There are at present four mills working at Motu, and one small mill at Te Karaka, cutting white-pine. Since my last report one of the Motu mills has been shifted and re-erected at Motuhora Station, and lias now a cutting-capacity of 10,000 sup. ft. per day. As it has taken practically the whole year to shift and re-erect, this mill has only cut about 100,000 sup. ft., except timber for its own use. The total output for the year is 4,850,000 sup. ft., comprising 3,530,169 sup. ft. rimu, 1,135,515 sup. ft. white-pine, and 175,316 sup. ft. matai, birch, and totara. Jit- , net wholesale prices at present charged bjr timber-merchants, I am attaching one of the merchant's price-lists. They allow 10 per cent, discount to builders. The timber delivered in the yards cost the merchants as follows, per 100 sup. ft., less 10 per cent, discount: Clean heart of rimu, 295.; ordinary building rimu, 165.; clean heart of matai, 305.; clean heart of whitepine, ISs.; ordinar}'building white-pine, 15s. The probable duration of different milling-timbers now used is, at the present rate of cutting, about thirteen years. No new timbers have come into use in this district. No timber of any value has been destroyed by fire in this district.

Wellington. ((J. 11. M. McClure, Commissioner of Crown Lands.) A ready sale has been found for all classes of timber, and the industry is generally in a, good condition. The millers arc, of course, very greatly handicapped by the shortage of expert labour and the high cost of materials required in running the mills, thereby reducing the output. Tl\e wages of bushmen average 15s. per day, and a good benchman can command up to £25 per month, with a, free house. Prior to the disastrous bush-fires which occurred recently in the Raetihi and surrounding districts there were forty-two mills operating on Crown, Native, and private lands, principally along the Main Trunk Railway north of Taihape, having an output of 5,760,000 sup. ft. per month. Nine of these mills were destroyed, their output being 1,115,000 sup. ft. per month, and some of these will not be rebuilt,, as the owners had almost completed milling. As the millers dispose of so much of their stock as mixed timber, it is impossible to ascertain the correct or approximate quantities of each class of timber cut; it is principally rimu, matai, and kahikatea, with a little totara. No special cutting has been done in New Zealand timbers outside the ordinary lines of stock. Au estimate of the period during which timber-supplies will be available at the present rate of cutting is about ten years in the more southern districts, while those in the northern part of the

6—C. 3.

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