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The location and distribution of the indigenous forests and exotic plantations are illustrated by the attached map from which it will be seen that the major forested portion is confined to the mountainous hinterland of the Dominion. These are protection forests, and mainly serve the very useful function of preventing erosion and rapid run-off by regulating and conserving stream-flow, and exercise a moderating influence on climate. It is most important, therefore, that this high country should not be denuded of its forest-cover, and it is becoming increasingly apparent as time goes on that any agencies which assist in the destruction of the standing bush or prevent regeneration should be rigorously suppressed. The prime offenders in this category are fire —the forests' greatest enemy' —- and deer. The adoption of a " wait and see " policy can only have one possible result—the slow but sure extinction of our native forests. The milling-forests will be held for timber-production, but such areas as are suitable for settlement will be made available for that purpose after the millable timber has been used. In passing, it may be stated that this latter total is a very small quantity compared with the aggregate area. Large areas of bush land in both Islands are still held by Native and private owners, and it is desirable that these blocks should be placed under proper forest management. On analyzing the figures shown in Appendix II it will be noticed that whilst 13,768 acres were proclaimed under the Forests Act in 1929-30, 58,967 acres were withdrawn, making a total reduction of 45,199 acres when compared with last year. The principal areas withdrawn were in Canterbury and Westland Regions, and are mainly forest lands which are now included in Arthur Pass National Park. In Nelson Region the reservation over a large area of provisional State forest was cancelled and the land was included in the scenic reserve surrounding Lake Rotoroa. Many areas were withdrawn for settlement purposes ; the grand total in this connection being 17,262 acres, of which 8,377 acres were located in Auckland and 6,886 acres in Westland Regions respectively. The most notable acquisition was approximately 12,300 acres of milling-bush in Southland Region. The statistics relating to the areas under control of the Service have been extended since last year and now show national-endowment forests separately. Estimated Total Area of Indigenous Forest in the Dominion. , T Area. Y ear. « 1847 .. .. .. .. .. .. .. 27,626^000 1869.. .. .. .. .. .. 23,517,000 1886.. .. .. .. .. .. .. 21,196,000 1893.. .. .. .. .. .. .. 20,578,000 1909.. .. .. .. .. .. .. 17,073,000 1923.. .. .. .. .. .. .. 12,593,000

Graph 1. —Total Area of Land under Forest in Dominion and Area of State-forest Dedications.

Legislation. The following is a brief summary of the year's legislation which affected the Forest Service : — Section 4 of the Finance. Act, 1929, empowered the Minister of Finance to borrow an additional £500,000 for the purposes of the Forests Act, 1921-22. Section 9 of the Reserves and other Lands Disposal Act, 1929, cancelled the reservation as a provisional State Forest over Section 10, Block IV, Arapawa S'urvey District (Marlborough), and set apart this area of 95 acres as a scenic reserve, while similar provision was made by sections 10 and ] 1 of the same Act with respect to 10,470 acres in Blocks 11, VI, VII. X, XI, XIV, and XV, Rotoroa Survey District (Nelson), and 145 acres in Blocks 111 and VII, Wataroa Survey District (Westland).

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