8.—4 a

Item—Plant Research, £5,130. 1230. The total expenditure provided for this purpose for 1931-32 was £5,130, of which £2,400 was estimated to be recoverable. 1231. It should here be stated that the Department of Agriculture also expends a considerable amount on plant research, both at Palmerston North and Marton, and a further effort should be made to co-ordinate the work of the two Departments. 1232. The Department of Scientific and Industrial Research has eleven officers engaged on this work, while the Department of Agriculture has twenty-six, and the expenditure of the latter Department is approximately £10,700 per annum. We have already recommended the closing of the Marton Area used in connection with plant research work' and the concentration of the activities at Massey Agricultural College. This seems to be the first essential towards complete co-ordination. 1233. In regard to the expenditure of the Department of Scientific and Industrial Research, we recommend a reduction of £1,440 for 1932-33, and realize that this will mean a reduction in personnel. As with other recommendations, this will probably involve a reduction in the grant of the Empire Marketing Board, but this cannot be avoided. Saving, £1,440. Item —Wheat Research, £3,884. 1234. The sum of £3,884 was provided for 1931-32 for this work, and £1,942 was estimated to be recoverable. 1235. It should here be stated that under section 27 of the Finance Act, 1927 (No. 2), persons engaged in the growing and milling of wheat, bakers in New Zealand, and related industries agreed to a levy on wheat and flour for the purpose of providing funds to enable the Department to undertake research investigations. The recovery of £1,942 mentioned above was estimated from this source, and it has been the practice of the Government to subsidize the proceeds from the levy to the extent of £1 for £1. Section 27 of the Finance Act, 1927 (No. 2), remains in force until 31st December, 1933. 1236. The net expenditure of the State in this connection for 1932-33 should be reduced to £1,442. 1237. At the expiration of the present arrangement the industry should provide the total funds required for research. Saving, £500. Item—Wool Research, £300. 1238. The amount provided on this account for 1931-32 was £300, in respect of which no substantial recoveries were obtained. 1239. We recommend that this line of research be abandoned. Saving, £300. Item—Pakihi Land Investigation, £150. 1240. The sum of £150 provided under this item is payable to the Cawthron Institute for work, done in connection with pakihi lands. This by no means reflects the total expenditure of the State on investigations into the possibility of developing these lands. Substantial sums have been expended out of the Land for Settlements Account in respect of the development of pakihi lands, and 60 acres have been grassed at a cost of £1,000. It has now been proposed that a further sum of £250 be authorized out of the Land for Settlements Account for the grassing of a further 12 to 14 acres, in order that an attempt may be made to carry stock on the land all the year round. We are of opinion that this land can never be expected to become a commercial proposition if grassing is to cost approximately £20 per acre, and cannot recommend a continuation of these experimental activities. Furthermore, as the area of 60 acres has already been grassed, it should be possible to demonstrate the potentialities of the land and the prospects of carrying stock for the whole year. A reduction in the number of stock at present carried would be just as effective for the purpose of this demonstration as the laying-down of an additional area in grass. 1241. It has been made abundantly clear to us that many works are carried on irrespective of the possibilities of development at a cost sufficiently low to ensure ultimate success. 1242. We recommend that this item of £150 be reduced to £75 during 1932-33, and that it should thereafter cease. Saving, £75. Item—Canterbury Agricultural College, £3,616. 1243. This item is to provide for research work carried out at the Canterbury Agricultural College, and, in view of the general reduction in salaries, we recommend a reduction in this grant of at least £260. Saving, £260. Item—General, £1,429. 1244. Grassland Management Research, £380.—This amount is also being paid to Canterbury Agricultural College in respect of specific investigations on four or five individual farms. We are of opinion that this work should be covered by the grant of £3,616 paid to the college under the previous item. Saving, £380. 1245. lodine Investigation : Grant to Lincoln College, £230. —Towards this investigation a subsidy of £150 has been received from the Chilean Nitrate Corporation. We recommend that this item be discontinued during 1933-34.

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