8.-6

XXI

At the present time there is an area of about 508,000 acres available for settlement. Some 12,087 acres were set apart for selection by discharged soldiers during the year. The policy is now, however, to open practically all lands for general application. Proclamations were issued during the year revoking the settingapart for discharged soldiers of an area of (54,044 acres in order that the lands could be so re-offered. The principal officer's of the Lands Department are at present very fully occupied in connection with the pressing duty of revaluing discharged-soldier settlers' holdings. On the completion of this important work they will again concentrate on the Government's policy of vigorously promoting land-settlement, especially in making adequate provision for the youths who have reached manhood since the conclusion of the war. There are many such who are both capable and desirous of acquiring land and taking an active part in the settlement of their country. LAND-DRAINAGE. The various land-reclamation projects under construction have been energetically prosecuted throughout the year, and with the aid of the recently imported excavating machinery much work has been accomplished. On the Hauraki Plains some 43,000 acres have been reclaimed and settled in small areas. This settlement has been, as a whole, most successful, and is now one of the most prosperous dairying centres in the Dominion. The capital value of the reclaimed portion of the plains to-day is in the vicinity of £2,000,000. Works on the Rangitaiki area, which comprises some 90,000 acres, are on the verge of completion. The output of dairy-products in this district is steadily increasing. At Kaitaia, where an area of 20,000 acres of swamp country is under development, the works are well forward. The Waihi Swamp, 11,000 acres, should be reclaimed within two years. Of the Crown area some 1,700 acres have been or are about to be opened for selection, and the balance, which is particularly low-lying, is being developed with a view to disposal for flax-cultivation. Extensive exploration surveys of the swamp areas in the vicinity of Hamilton are now in hand, and from the information available it appears that there is a big field for future development in that locality. IRRIGATION. The large sum of £95,46(i was expended on irrigation-works for the year just ended, and considerable areas of land were brought into intensive cultivation. The localities operated on included, amongst others, Ida Valley, Tarras, Ardgour, Roxburgh, and Manuherikia Valley. To encourage settlement the rates charged to the farmers are levied on a graduated scale, commencing at a low figure for the first year, and rising to the maximum in the fifth year, the object being to avoid, unduly harrassing the settler when the calls upon his capital, are greatest i.e., when he is developing the land. It is proposed to proceed actively with the undertakings now under construction, and other works will be inaugurated as the land relating to schemes already completed is taken up. As the actual irrigation proceeds the necessity for drainage-works to carry off surplus waters becomes evident, and will be attended to as required. To minimize this work constant propaganda against water waste is being carried on. KAURI-GUM INDUSTRY. In 1923-24 a large volume of business has been done in the industry. The Department's sales for the year amounted to £23,000, whilst purchases were made to the amount of £6,500. Buying was carried on only in districts where acute