C.—3

22

Graph 9. —Number of Mills reporting to Government Statistician, and their Operating-capacity, for Years ended 13st March, 1921 to 1930.

From the graph it would appear that the entry of new mills kept pace with the increased production. What is more significant is that the 1926-29 depression in the industry has eliminated a large number of units, and that the industry is now operating at a higher percentage of its producing-capacity than during any other year in the last decade. As compared with other industries in the Dominion, such as freezing, woollen, footwear, &c., many of which are operating at under 40 per cent, capacity, it is in a fairly healthy condition, especially when consideration is given to the fact that prices are stabilized and bad debts lower than ever before. Reviewing, however, the various factors involved —that is, possibilities of substitution of local for imported woods, increased exports to Australia, and decreased local building activities—it woidd appear as if the industry is faced for the next year with a decrease in production. CHAPTER IV.—GENERAL. 1. Wild Life in State Forests. As the policy of the Service with respect to the control and administration of forest wild life was referred to in some detail in last year's report it is not proposed to repeat those remarks but it is desired to emphasize the fact that the damage caused by noxious wild animals in the Dominion —particularly deer and pigs—is no longer of parochial concern only, but has reached the stage when it must be faced as a menace to the national well-being. Experience has definitely proved that owing to the natural increase of these animals only measures of control which can be exercised systematically, economically, and continuously can reduce the existing herds to within safe limits ; and with these considerations in mind the Service has formulated its plans as far as possible. The following paragraphs contain a resume of the year's activities in this respect. Deer. The number of deer-tails received was 9,598, made up as follows : Nelson, 3,158 ; Westland, 488 ; Southland, 3,883 ; Canterbury, 2,069. In addition 404 deer were destroyed in plantations, which makes a recorded aggregate of approximately 10,000. It has become increasingly apparent that deer, in addition to the damage they cause in indigenous forests, now constitute a serious menace to the exotic plantations in several of which they are unfortunately established, and their attacks on compartments of Douglas fir raise a new problem in silviculture. Organized deer-destruction is therefore of national importance, and should be dealt with accordingly. In North Canterbury State forests systematic deer-destruction was carried out by three parties working in close co-operation with contiguous run-holders, and as the results were satisfactory to all concerned, it is proposed during the coming year to extend this method of destruction as far as funds will permit. Shooting will be closely supervised, and every care taken to prevent interference with stock. Regular shooting has been undertaken in the Tararua forests (Wellington Region) and at the Blue Mountains (Otago) ; at the latter station the fallow deer destroyed averaged seventy per month. Increasing success has attended the commercial exploitation of fallow and red deer hides. Monthly consignments of hides for export are coming forward from Nelson, Canterbury, and Southland, and 1,200 hides were also sold by the Service for export. It is hoped that this market, when fully developed, will reduce the cost of deer-destruction by at least 25 per cent. Every assistance in this connection has been given to private hunters and skin-buyers alike. At present the cost of shooting averages about Bs. per head, although this may be slightly reduced with better organization and transport facilities.