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CHAPTER lII.—THE STATE FORESTS. 1. CONSTITUTION OF STATU FORESTS. At the close of the year the area of permanent State forests stood at 1,674,844 acres, the area of provisional at 5,661,830 acres, and the area of forest reserves at 96,507 acres—a grand total of 7,433,181 acres, as against 7,315,706 acres in 1923. The wide disproportion between permanent State forests and provisional State forests must be corrected, for it is evident that at least 5,000,000 acres of provisional areas comprise lands chiefly valuable for forestry and not for agriculture and settlement. In relation to the area of forest lands now dedicated to timber-crop production and to protection of stream-flow, it is interesting to note that the total unimproved occupied land of the Dominion has decreased by 232,629 acres from the year 1919-20 to the year 1922-23; whilst the total increase in the acreage of unimproved occupied land which has reverted to fern, scrub, and second growth has increased by 230,708 acres during the same period (from statistics of New Zealand). The total area of barren and unproductive land indicated for the year 1922-23 is 1,952,714 acres, and of fern, scrub, and second-growth land is 3,953,075 acres, making a grand total of 5,905,789 acres —really a serious burden and a dead-weight on the regions in which they have accumulated. The residual nationally owned forests of the Dominion must therefore be sacredly conserved for our present and future needs, for every acre of forest land will be required. Substitutes and economies in utilization will only partially offset the normal increase in demand as population increases. Forest Reconnaissance, Survey, and Inventory. The National Forest Stock-taking Inventory was completed during the year, and is now ready for printing and circulation. This valuable document furnishes the fundamental basis of indigenous forest stocks available for our Dominion-wide present and future needs, and upon it will now be built the permanent programme of action for forestry in New Zealand. The report deals in a comprehensive manner with the principal forest types ; general description of the forest resources of each region ; summary of the timber of the Dominion ; silvical information as to the forest-trees —their distribution, range; ownership of forest lands and their classification; volume tables for rimu and general statistical review. The finalized statistics show that New Zealand possesses nearly 39,000,000,000 superficial feet of milling softwoods and 23,000,000,000 superficial feet of hardwoods, a total of 62,000,000,000 superficial feet growing on 12,592,000 acres (State forests comprise 7,433,449 acres). Reconnaissance surveys were made of 446,000 acres of forest lands in the North Auckland Province, Mamaku district; in the Mimi and Waro Survey districts ; in the Motuiiora, Wairoa, and Mangaweka areas ; and in the following South Island regions—Takaka, Aorere, Cobbe, Karamca, Little Wanganui, Brighton, and Okarito. These surveys were undertaken for the purpose of classifying the land and timber types and assessing the forest-values for commercial and protection purposes. These examinations also serve for the development of proper working circles and adequate boundaries. The mileage of boundary-demarcation surveys run was 160 miles. This work has really only been initiated, and is chiefly confined to the delimitation of new afforestation areas and the definition of boundaries where contiguous owners require adjustments. A survey of 8,231 acres of State plantations at Hanmor Springs was completed and the plan approved by the Chief Surveyor, Lands and Survey Department. The boundaries of 3,221 acres of State jplantations in the Rotorua region were also surveyed and ihe plans put in hand. CO-OPERATION, TIMBER-STUMPAGE EXAMINATIONS, AND REPORTS FOR OTHER DEPARTMENTS. The Service has extended during the year its facilities for timber-land examination and forestry generally to several Native Land Boards, the Departments of Lands, Public Works, Mines, Valuation, and to other Departments : 18,043 acres of land in 48 areas have been examined on their account. 2. FINANCE. The year lias been a record one in forest receipts. The total receipts from all sources paid into the State Forests Account were £93,479, of which amount the nurseries and plantations yielded £8,226. The total increase in receipts was 47 per cent, over the previous year and 200 per cent, over the year 1919-20. The State Forest Service expenditure for the year was as follows : —

Annual State Forest Service Expenditure.

Fiscal Year ended Item. 31st March, 31st March, 1924. 1923. t. Salaries >. Management and development of State forests L Forest-fire prevention and patrol (indigenous forest) .. ). Education : Reference library, publications, &c. .: ). Forest research and products investigations .. '. Afforestation : Plantations, nurseries, and general r. Acquisition of indigenous forests [. Grants to local bodies, &c. £ 30,686 16,271 1,977 582 3,738 38,006 4,548 2,496 £ 30,092 13,799 1,808 574 2,224 35,155 1,064 694 *98,304 85,410 * includes £2,002 unauthorized expenditure.