C.—3

12

Counties' Share in State Forest Timber-sale IReceipts. In accordance with section J 7 of the Finance Act, 1924, whereby out of moneys received into the State Forests Account from royalties on or net proceeds of sales of native timber growing on Crown lands set apart by Proclamation as State forests or as provisional State forests one-fifth part is made payable to local authorities, the total sum of £6,141 13s. 4d. was, during the period under review, paid out of the State Forests Account to thirty-eight, local authorities. These counties have in most cases expended their subventions upon metalling and maintenance of roads contiguous to forests from which the timber lias been milled. The State forests have thus provided sums of money for improvements to backblock settlers' roads which from their remote situation and consequent unimportance when compared with many other county roads would have received only a small proportion of the funds at the disposal of the local authorities concerned. National Endowment Account's Share in State Forest Timber-sale Receipts. From the forested national-endowment land under the forest-management of this Service the National Endowment Account benefited by the receipt of the sum of £9,740 12s. 2d., being the amount due at the 31st March, 1925, under section 39 of the Forests Act, 1921-22, which provides for the payment to the National Endowment Account of one-half of the revenue derived from any national-endowment land comprised in a State forest remaining after the deduction of the expenses of the administration of that land as a State forest. 3. OPERATION. Timber-sales. During the period under review 79,009,000 ft. b.m. were produced by mills cutting State-forest timber, and the sum of £.130,132 was received from all timber licenses in force. A perusal of the

Hard Beech (Nothofagus truncata), Nelson.

following table discloses a steady increase in the receipts from the sale of timber, ending at the exceptionally high figure of £134,731 for the 1924-25 period. That the receipts from this source for the past year are only £4,599 below the phenomenal figures of the previous period must be accepted as conclusive proof that the timber-sales policy of the Service is giving satisfaction to those most vitally concerned —i.e., the sawmillers operating within State forests—while the aesthetic and waterconservation values of each forested area have been thoroughly considered and safeguarded before the merchantable timber thereon has been offered for sale.