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out. It is, of course, only reasonable that all forests should be controlled by the Forestry Department, which exists solely for the purpose of managing forests efficiently, and will have the trained staff necessary for that purpose. It will certainly be one of the duties of the Forestry staff to make sure that the forests axe so managed that there will be ample supplies of timber both now and in the future for mining as for other purposes.

Financial. Revenue received from Royalties, Sales of Timber, &c., from Indigenous Forests.

From the statement above it will be seen that the largest amount of revenue from indigenous forests is received from national-endowment lands. The Auckland District returns the largest forest revenue, and Hawke's Bay the least. The total amount received as revenue from indigenous forests is £26,375, but of this only £4,937 is paid into the State Forests Account. Most of the forest revenue received from the Westland District goes to goldfields revenue, and this Department has no record of it. Receipts and Expenditure. The amount appropriated last year for expenditure upon State forestry operations was £69,257, and the expenditure amounted to £41,344, being a decrease of £508 upon the expenditure of the previous year. This year's expenditure differs little from that of last year; in connection with Balmoral Plantation there is an increase of £1,776, and in connection with the war bonus an increase of £1,728. As £3,294 was expended last year in the purchase of part of the Balmoral Estate, a net decrease as above is shown. It will be understood that as the area under plantations increases, additional expenditure is also required for the purpose of supervision, fire-protection, maintenance, &c. The present charges are incurred almost entirely in respect to planting operations. Under section 32 of the Finance Act, 1918, authority was provided for raising £200,000 for forestry purposes. During the year £26,900 was raised and placed to the credit of the State Forests Account. In addition to this, £10,000 was contributed from the Consolidated Fund. The revenue from State forests amounted to only £5,294 2s. Bd., being only about half that received for each of the years 1916-17 and 1917-18. The revenue from the plantations and nurseries amounted to £2,235 7s. It is anticipated that this year milling operations will be started in one or other of the kauri forests, that areas will be acquired for forestry, and that considerable increases in staff will be required ; it will be necessary, therefore, that increased financial provision should be made to meet these new undertakings. Statu Forksts Account.—Receipts ano Payments. Dr. £ s. d. Cr, To Cash in hand, Ist April, 1918 .. 1,174 16 10 By Nurseries and planta- £ s. d. £ s. d. Loan Account—Debentures issued .. 26,900 0 0 tions— Consolidated Fund—Contributions to- Salaries .. .. 5,163 15 5 wards forest-tree growing and plant- Buildings, planting, ing .. .. ... .. 10,000 0 0 material, &e. ..29,785 16 10 Revenue from State forests —Rents, Travelling-expenses .. 098 7 0 royalties, fees, &c. .. .. 5,294 2 8 Books, stationery, Revenue from nurseries and planta- postages, &o. .. 204 9 7 tions— £ s. d. War bonus .. 3,309 4 7 Trees .. .. 608 12 10 . 39,16113 5 Seeds .. . . 84 19 5 State forests — Firewood .. .. 408 15 0 Management expenses 1,434 7 11 Polos ' .. 67 19 0 Timber Control CornGrain . . .. 536 12 10 mittce .. .. 274 18 7 Sheep .. . . 88 14 6 Bridges, &c. .. 372 10 2 Wool .. .. J94 7 4 Report by D. E. HutGrazing .. .. 23119 2 chins .. .. 100 0 0 Rent of cottages .. 13 611 2,18116 8 2,235 7 0 Interest on debentures .. .. 1,86.1 10 11 Cash in hand, 31st March, 1919 .. 2,399 5 0 £45,604 6 6 £45,604 6 6

District. Stato Forest. Crown Land. Land for Settlement. National Endowment. l_ Auckland Hawke's Bay 1'aranaki Wellington Nelson Marlborough Westland Canterbury Dtago Southland • . ■ £ 619 £ 2,608 107 438 2,353 377 304 177 £ 7 £ 3,371 53 306 46 1,403 11 1,126 547 799 8.1 7,370 536 130 1,844 259 1,492 11 Totals .. 4,937 8,115 99 13,224