C.—l.

the licensee shall prevent the destruction or burning of timber or bush on the land comprised in his license, and it is also provided that no licensee shall burn any tussock on his run or permit any tussock to be burnt without the prior consent in writing of the Land Board. The administration of the law has, however, proved to be extremely difficult, and from special reports recently submitted it appears to be fairly evident that a great deal of indiscriminate burning has been going on, and that great damage is resulting from this illegal practice and also from overstocking. The whole matter is regarded very seriously, and arrangements have been made for the Department's Field Inspectors to devote much more attention than has been possible during the past few years to the general supervision of Crown leaseholds. The importance of observing and reporting breaches of the conditions of Crown leases and licenses has been particularly stressed, while pastoral licensees have been circularized drawing their attention to the statutory provisions relating to burning, &c., and the whole subject will continue to be given close attention. Land-development. During the year development operations were undertaken on two additional blocks in the Hawke's Bay District —Kaheka Estate, 10,000 acres ; and Parinui Settlement, 1,044 acres. Satisfactory progress has also been maintained on a number of other blocks which were under development at the date of the last annual report. The total net expenditure on development for the year was £24,430. Owing to the abolition of the Discharged Soldiers Settlement Account, it has been necessary for the Lands Development Board to take over as from 31st March last a number of Crown properties which were formerly farmed from Discharged Soldiers Settlement moneys. The number of Crown tenants who have been assisted by way of loans to develop their own properties now totals 513, and the sum of £213,032 has been advanced to these tenants for improvements and stock. Pursuant to section 10 of the Land Laws Amendment Act, 1929, the following summary of operations up to 31st March, 1938, is recorded : — (a) The Several Areas of Unoccupied Crown Lands in Respect of which Development-works have been undertaken during the year. Auckland Land District: — Galatea Estate, of 22,326 acres, near Murupara : The greater part of the estate continues to be worked as a sheep and cattle station, and operations have resulted in a very satisfactory year despite the substantial drop in wool-prices. During the year three sections were taken up on permanent lease and two share farmers converted to renewable lease, making a total of nineteen permanent settlers who are making satisfactory progress. Share milking is being continued on seven farms. The stock carried by the share farms consists of 628 dairy cattle, 18 horses, and 238 pigs. The stock carried on Galatea Station as at 31st March, 1938, exclusive of that on share farms, comprised 15,957 sheep, 227 dairy cattle, 5,734 run cattle, and 4 horses. Particulars of the developmental work being undertaken are given in Appendix 111 in the report of the Land Drainage Branch of the Department. Hawke's Bay Land District:— Kaheka Estate comprises 10,000 acres and is portion of the Tutira Estate and the Totara-O-Te Rauhina Block, both of which areas reverted to the Crown on the expiry of the leases granted before purchase of the blocks. The stocking and development of this block has recently been commenced, and 8,840 sheep and 1,370 cattle have been placed on the area, while fencing operations have also been started. The area is at present being worked from Kakariki, and two full-time and about ten part-time men are employed on it. Kakariki Estate, a purchased estate of 19,288 acres at Kotemaori: This block is now in a more advanced state of development. A further 900 acres has been laid down in new pasture, and, of the 14,500 acres included in the current development scheme, 13,500 acres are now in pasture including 300 acres ploughed and grassed, 9,900 acres cleared and grassed, and 3,390 acres in old pasture. Fencing of a length of 3,735 chains has been either erected or repaired. The farming operations are resulting in satisfactory returns in spite of the wool proceeds being considerably reduced during the past year. The property is carrying 14,779 sheep and about 1,000 head of cattle. The wool clip for the current year yielded 230 bales. Parinui Settlement: This property, comprising 1,044 acres, was previously farmed from Discharged Soldiers Settlement moneys. During the past year the block has been cleared of scrub, burnt, and surface sown with subterranean clover. An extensive fencing programme to control the pasture and fern is being undertaken. The section at present is carrying 1,400 sheep and 90 head of cattle. Taranaki Land District Tapuwae Estate, of 3,350 acres, a purchased estate in the Kong-country : Considerable progress has been made with the development of this block, and, with the establishment of a labour camp in the near future, operations should be considerably hastened. The chief obstacle to overcome has been bush sickness, but now that this has been successfully treated the ultimate success of operations appears to be assured. Fair progress has been made during the past twelve months, and the estate is now independent of outside sources for its supply of winter feed. Drains have been extended and deepened, with the result that an area of 150 acres of swamp previously regarded as useless will, it is hoped, be successfully developed. Live-stock consists of 6,800 sheep and 982 cattle.

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