G.—lo.

The largest number of schemes is in the Waiariki Maori Land District, which comprises the Rotorua and Bay of Plenty districts, the Urewera country, and the stretch of coastal lands between Opotiki and Cape Runaway. Seven separate tribes are affected. No district in New Zealand is as favourably situated as this for establishing compact development units, and no Maori communities have entered more thoroughly into the spirit of the development policy than the tribes which inhabit it. (2) The method of organization. The first conception of a land-development scheme is that of a compact, connected area, comprising, it may be, a number of title subdivisions, but so situated as to present a block capable of being'treated as an economic unit and of being subjected to a carefully conceived settlement plan. For such a scheme budgets of expenditure can be fairly closely estimated and development proceed on a face according to an easily understood plan. The majority of the schemes in operation fall "within this class, the key schemes being Waipipi, near Waiuku, and Horohoro, near Rotorua. During an extended survey of the Tokerau or North Auckland District in April-May, 1930, the Minister was impressed with the scattered nature of the Maori holdings, due chiefly to alienations that have taken place over the past century and to the fact that the reservations retained cluster round village-sites and sources of natural food supplies, most of the intervening land having been sold or leased. It was clear that the idea of connected economic development areas could not be applied to the northern territory. It was decided to adopt the existing organization of the schemes for the consolidation of Native-land titles, which are practically on a tribal basis, and to divide the north into four administrative groups—Kaipara, Hokianga, Bay of Islands, and Mangonui—the corresponding tribal units being Ngati-Whatua, Ngapuhi, Te Rarawa, Ngati-Kahu, and Te Aupouri. Within a group the duty was laid on the Consolidation Officer and Farm Supervisor to report upon and to recommend applications for assistance. In the meantime all Native-owned areas were gazetted in order to establish the basis for authorization of expenditure from development funds, the local officers recommending from time to time the units for assistance. This system is known officially as the North Auckland system, and is being applied to other districts where the scattered nature of the Native holdings is the chief characteristic. The following schemes fall within this class : —• Kaipara. Onewhero. Waiapu-Matakaoa. Hokianga. Tauranga. Tuparoa. Bay of Islands. Whakatohea. Heretaunga. Mangonui. Te Kaha. Manawatu. They call for much greater co-ordination between the Consolidation Officers and the Farm Supervisors, and for closer* and more constant supervision. The overhead expenses are necessarily higher than in schemes of the Horohoro type, but the demands on the development funds for labour-costs are lower and the number of units assisted greater than in schemes of the Horohoro type. (3) The source of financial provision. One scheme—Tokaanu—is financed by the Native Trustee ; four schemes—Waipipi, Kaihau, Te Kuiti Base Farm, and Taheke —are financed by the Maori Land Boards in whose districts they are situated ; and the rest by the Native Department from loan funds made available through the Native Land Settlement Account. This also indicates the nature of the controlling authority, although in the case of the schemes financed by the Native Department the powers of the Minister have been officially delegated to the various Maori Land Boards, except the Board of the Tokerau District. Tokaanu is administered by the Native Trustee under the provisions of section 25 of the Native Trustee Act, 1930 ; Wai-pipi and Kaihau are administered by the Waikato-Maniapoto Board under section 3 of the Native Land, &c, Act, 1928 ; and the rest are operated under section 23 of the Native Land, &c, Act, 1929. (4) The nature of the development work undertaken. This depends, in the first place, on the nature and quality of the land. The aim is to put it to the use most suitable to the nature of the country ; preference is given to areas which lend themselves to subdivision into small holdings. Six out of the forty-one schemes are predominantly pastoral. In those cases the land is of excellent quality, but not suitable for dairying. Eighteen of the areas when first brought under development were totally unimproved and unoccupied, consisting of waste pumice lands, forest, and scrub. One was a small reserve of totara and mata ; , which is being used as the base of supply of posts for schemes in the Rotorua area. <KOn the rest of the schemes the Maori communities interested were already in occupation and carrying on farming in a haphazard manner with such assistance as they could obtain from storekeepers, dairy companies, or stock and station agents. The problem here was twofold. In the first place, the titles had to be put in order, this being the function of the Consolidation Officers. This was necessary to regularize occupation and' clear the way for apportioning development costs to individual sections of land. Then the partially developed land had to be taken in hand, the standard of cultivation gradually raised, and the farms made efficient In many cases the Maori farmers had incurred liabilities in various directions. It was necessary to investigate these and to consider whether it was advisable to assist the applicants by taking over such liabilities as well as engaging to carry out further development on their behalf. The Ruatoki scheme is an example of land which was partially improved and farmed before it was placed under the development policy. At the time it was decided to so place it the Natives of Ruatoki, who are of the Urewera Tribe, had been cultivating the extensive flat lands

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