Graphic Expose, State Forest Service Expenditure for the Fiscal Year ended 31st March, 1923.

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Soil and Land Classification. A reconnaissance of some 23,000 acres of State and provisional State forest situated on the watershed between the Rotorua, Thames Valley, and Bay of Plenty districts was carried out. The land, with exception of 741 acres in two small blocks, was declared more suited, to forestry than settlement uses. 3,300 acres in the region of the Mamaku Plateau would be excellent grazingcountry were it not subject to bush, sickness. Through the soil being too poor, and the certainty of rapid deterioration, the remaining 19,700 acres were considered to offer no proposition as settlement lands. The ever-increasing area of lands once forested, some 2,000,000 to 3,000,000 acres, and now deteriorated to the stage where farming will not give sufficient return to meet interest, rates, taxes, cost of working, and living-expenses, makes the classification of our remaining forested areas a matter of pressing importance. Trounson- Kauri Park. The control of this valuable and important scenic park was transferred during the year to the Lands and Survey Department; and, though the Service had initiated measures for the protection of this national monument from fire and exposure, much remains to be done in this direction. 2. FINANCE. The total gross revenue paid into the State Forests Account during the year amounted to £65,067 15s. 2d., of which amount plantations and nurseries contributed £7,413. Compared with last year's figures tho revenue shows the highly satisfactory increase of £34,231 7s. 9d., or 111 per cent., and an increase of 230-3 per cent, over the receipts for 1920-21. State Forest Service expenditure for the year was as follows : —

Annual State Forest Service Expenditures.

Explanatory Notes on Expenditure for 1922-23. Items A, B, C, D, E. —The total management charge for the State Forest estate was at the rate of l-3d. per acre, including a proportion of item A. Item F. —2,862 acres of trees were planted and 44,646 acres of growing plantation protected, compared with 3,408 acres planted and 41,868 acres protected during the previous year. The great decrease of £12,215 in this item is explained by the temporary halt in planting operations, reductions in wages, and general economy. Item G- -Economies made during the year on account of the financial stringency explain the decrease in this item. There are large areas of densely timbered lands which should be added by purchase to the State Forest estate. Item H. —This item includes one grant to a municipality for tree-planting purposes.

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(See Annexure for details.) Item. Fiscal Y 31st March, ! 1923. 'car ended ! 31st March, 1922. I i i A. Salaries B. Management and development of the 7,336,000 acres of State forest C. Forest-fire prevention and patrol (indigenous forest) . . D. Education : Reference library, publications, &c. E. Forest research F. Afforestation : Plantations, nurseries, and general G. Acquisition of indigenous forests H. Grants and miscellaneous £ 30,092 13,799 1,808 574 2,224 35,155 1,064 694 £ 31,194 17,552 1,035 848 999 47,371 7,173 1,410 85,410 107,582