(J.—3

42

district may last for twenty years. During the year the amount of royalty received from sales of timber was us follows : From timber out on Crown lauds, £5,090; State forests, £54; national endowments, £89 : total, £5,233. During March this year a cyclonic storm visited this Island and caused a certain amount of damage to the unmilled forests (more especially on the outskirts) in the Horopito, Raetihi, and Ohakune districts, much of the timber being blown down. The bush-fires which accompanied the storm did not appreciably affect the standing timber on Grown lands, only small areas scattered through the fire zone being destroyed, possibly about 100 acres in all. No other damage is reported from other parts of the district. The felling of bush left by millers and clearing up those areas by burning and sowing grassseed is also urged, as the neglect in these matters is considered to have contributed to the recent disaster referred to above. Marlboeough. (H. D. McKellar, Commissioner of Crown Lands.) The demand for timber is greater than the supply. Experienced labour is difficult to obtain, and war conditions generally are hampering the output. Seven sawmills are operating in the district, with an output of 3,826,822 ft., comprising 2,374,247 ft. riinu, 1,189,118 ft. kahikatea, 192,087 ft. matai, 59,432 ft. birch, 11,938 ft. totara. Five mills sire operating on royalty bases on Crown lands and State forests, and one on straightout sales of timber on Crown lands and whatever private timber can be purchased. The remaining mill works private lauds. Two licenses were surrendered during the year, one of which had not out any timber during the period. The output mentioned is from the mills operating Crown and State forest lands on royalty basis. Royalties.— State forests (2,523,629 ft.), £1,119 125..8 d .; licenses and sales of timber from national-endowment lands, nil; licenses and sales of 1,304,193 ft. timber from Crown lands, £354 18s. Id. : total, £1,474 10s. 9d. The net wholesale prices per ]()() sup. ft. at the mill are as follows: liimu—Rough hewing, 0.8., and sarking, 14s. 6d.; clean, Ids.; heart, IDs. Birch, 255. 6d. Matai—Rough heart, 235.; clean, 255. White-pine, 13s. Some of the softer timbers arc now being utilized to make wood-wool, largely used for fruitpacking in the Nelson District. No forests have been destroyed by fire during the past year. War conditions generally, with scarcity of competent labour, the abnormal increase in the cost of machinery, and increasing inaccessibility of milling-timber, arc having a deterrent effect on the output in this district. I might quote here the local retail prices of timber per 100 sup. ft. to the public : Rinru — Rough hewing, 18s. 6d.; 0.13. and sarking, 19s. 6d.; clean for dressing, 8 in. to 12 in., 21s. 6d. to 245.; T. and G. rusticated, 255. 6d. Birch, 31s. 6d. Matai—Rough heart, 265.; clean heart, 28s. White-pine, Is. 6d. less than rimu. Totara, not quoted; very scarce and difficult to obtain. Nelson. (F. A. Thompson, Commissioner of Crown Lands.) In this district conditions vary somewhat in different localities, and it will be found advisable to consider the question as it relates to the following three portions of the district —the northern portion, and the Reef ton and Buller portions. In the northern portion the industry is practically finished on Crown lands, and the cutting is almost all confined, to freehold, and even the areas thereon available are comparatively small and scattered. It is estimated, therefore, that for the more valuable kinds of timber, such as rimu, totara, matai, and kahikatea, cutting, at the present average rate, can hardly last more than four or five years. There will still remain a, very considerable area of good birch, both black and brown; but at present birch, of which tlic supply is practically inexhaustible at the present rate of output, is not much in demand, and timber of the better classes is being brought here from Polorus Valley, either by sea or by wagoning, for conversion. The increasing inaccessibility and difficulty of marketing such timbers as remain, oombined with conditions prevailing on account of the war, render milling operations in this locality veryunsatisfactory. There are twenty-four mills in active operation, but on the whole the industry is not in a very flourishing condition, It is not possible to obtain a complete statement of the output from mills working on private lands. There was no destruction of millable timber by fires during the year. In the Reefton district seven mills are carrying on active operations, almost wholly on Crown lands. The ascertained output was 2,201,768 ft., comprising the following limber: liimu, 1,503,598 ft.; birch, 689,076 ft.; silver-pine, (i,244 ft.; and kaikawaka, 2,850 ft. The more valuable timbers, such as rimu, it is estimated, will not stand more than fourteen oi- fifteen years'. milling, but the birches, as in other parts of the district, will last very much longer. No new timbers axe be,ing utilized so far. During the year no bush-fires were experienced, and consequently no milling-timber was destroyed.