c.—s.

offset by the areas withdrawn, which approximated 24,500 acres, and consisted of 21,100 acres made available for settlement under the Land Act and 3,400 acres set aside under the Scenery Preservation Act. It was found necessary to slightly adjust last year's figures, as the of recent surveys disclosing cases of overlapping boundaries, incorrect areas, &c. It is inevitable that further instances of this kind will occur as later survey data become available. The area dedicated to forestry purposes does not yet equal 12 per cent, of the total area of the Dominion, and is still insufficient to supply adequately the future needs of the Dominion. 2. Legislation. No amendments to the Forests Act, 1921-22, were made during the year under review. By section 8 of the Reserves and other Lands Disposal Act, 1931, an area of 3,290 acres in Maungatapu Survey District (Nelson-Marlborough Forest Conservation Region) was withdrawn from State forest and made a scenic reserve. Section 12 of the same Act authorized the cancellation of the reservation as a provisional State forest of an area of 248 acres in Waiwhero and Mawheranui Survey Districts, Westland Forest Conservation Region, in order that it could be set apart for the purposes of Part 111 of the Coal-mines Act, 1925. 3. Finance. jßeceipts. The forest receipts for the past financial year from all sources were £55,558. Details, together with comparisons with the previous two years, are appended.

TABLE 2.

The main reason for the decrease in revenue is the continued depressed state of the sawmilling industry, which has resulted in the complete cessation of operations by a number of millers and the working of part time only by others. Payments. The net expenditure from the State Forests Account for the past financial year was £275,177, a detailed analysis of which is set out herein, also comparisons with the years 1929-30 and 1930-31.

TABLE 3.

3

Item. I 1931-32. 1930-31. 1929-30. Indigenous-forest receipts— £ £ £ Timber-sales .. .. •• •• 36,320 56,391 60,711 Timber royalties and trespass .. • • • ■ 3,751 3,538 6,790 Leases —Grazing .. .. •• •• •• 1,704 2,093 2,115 Sawmill-sites, industrial, &c. . . • • • ■ 1,865 1,636 2,850 Miscellaneous .. •• •• •• 2,249 3,723 9,685 National Endowment Account allocation .. 6,391 9,866 12,156 Nurseries and plantations — Trees and seeds .. •• •• •• •• 1 f 5,271 8,082 Firewood and poles •• •• Y 3,278 298 1,117 Miscellaneous .. •• •• •• J I 1>899 2,131 Totals 55,558 84,715 105,637

Item. 1931-32. | 1930-31. 1929-30. Fixed charges and stafl salaries —• £ £ £ Interest and loan expenses .. ■■ •• 90,223 82,809 59,884 Staff salaries .. •• ■■ 40,974 49,526 47,817 Allocation of revenue — National Endowment Account .. •• •• 6,337 9,495 6,971 Local-body payments .. •• •• 6,416 10,346 11,522 Management, establishment, and development — Indigenous forests .. .. •• •• 12,893 32,331 28,520 Fire-fighting equipment and prevention .. 1,578 1,454 1,295 Educational—Reference library, &c. .. ■■ •• 276 742 525 Research and experimental equipment, &c. .. ■■ 1,199 4,867 6,387 Afforestation —Nurseries and plantations .. •• 107,795 194,556 248,404 Sand-dune reclamation .. •• •• HO 480 1,689 Land-purchase .. •• ■■ •• 6,874 6,361 12,958 Miscellaneous • • ■ • ■ • • • ■ ■ 502 98 1,446 Totals .. .. •• •• •• 275,177 393,065 427,418