Q.—lo.

There is perhaps one Native who merits special mention. This settler has bnilt his house, cowshed, and calf-house out of split kauri timber, the only cost to the Department being for cement and nails, though a relatively small sum has recently been approved for improvements to the interior of the house. Photographs of the house and cow-shed are shown at the end of this report (Nos. 12 and 14), and special mention is made of this case in order to show what a member of the Native race can and has done with a very small outlay of capital. The three buildings have cost probably not more than £10. The timber, of course, was growing on the property. This settler always keeps his buildings scrupulously clean, the interior of his cow-shed being remarkable for its cleanliness and shining utensils. He is at present milking only ten cows, but his butterfat average for the year will be approximately 215 lb. of fat per cow. Live-stock as at the 31st March consisted of 57 dairy cows, 14 other dairy stock, 38 run cattle and 7 working-horses. Hauraki. This is a " blanket " scheme covering eight settlers' properties in the Thames-Paeroa district. The land varies considerably in quality from drained swamp country to medium loam and clay of good quality. The settlers occupy a total area of 1,093 acres, of which some 425 acres are in fair to good pastures comprising for the most part good flat undulating land. Of the remaining area, approximately 540 acres are considered capable of profitable development. This is undulating to hilly country containing a small swamp area, 80 per cent, of this area being ploughable. The settlers, assisted by sixteen relief workers, have maintained an excellent standard of work during the year. Three settlers commenced milking during the season. Live-stock as at 31st March included only sixty dairy cows, but it is intended to purchase this coming season a further ninety to a hundred good-quality heifers. The pastures on which the stock will be raised are good, and profitable returns are anticipated. The health of all the settlers and their dependants, numbering fifty-four, has been good. Two first-class cow-sheds were erected during the year, and it is intended to erect or repair four more sheds for the coming season. The housing conditions are only fair, and arrangements are in train to erect four dwellings as soon as possible, when the living-conditions should be satisfactory. Hauraki : Uriwha. The Uriwha Reserve consists of two separate areas of Native land containing 486 acres and 293 acres respectively. The former area is situated some four miles from Waihi, on the Whangamata-Waihi Road, which runs through the property. The 293 acre block lies well up in the hills north of Karangahake, and is of no use for development purposes, being steep bush country which should ultimately be made part of the forest or watershed reserves adjoining. The 486 acres consist of approximately 200 acres of undulating, but ploughable, good hill country, while the remainder is in medium bush, all suitable for development. At the present time the scheme maintains eight men, who have thirty-three dependants. Work has been held up to a certain extent owing to lack of accommodation for additional workers, but this should soon be remedied. The Public Works Department have in hand the erection of one cottage and six workmen's huts. The following work was completed at 31st March, 1938 : 20,000 battens split and stacked ; 66 tons of firewood cut; 10 chains of drains dug ; 9 acres ploughed and grassed, while another 7 acres were ploughed to lie fallow ; and 30 acres cleared of tea-tree and stumped ready for ploughing. Horses and implements have been purchased. This area will ultimately be subdivided into four dairy-farms. Kaihau. • Two miles from Waiuku Township is situated this scheme, of 442 acres. Approximately 344 acres are in grass, and the soil is of a good-quality loam with an excellent carrying-capacity. Five settlers have been established on an area of 376 acres, and during the year the system of payment of cream cheques was altered. At the commencement of the last dairying season, instead of paying wages, as hitherto, based on one-third of the cream cheque, the settlers were paid 50 per cent, of the proceeds from the sale of butterfat direct from the dairy company, and it was arranged that they should pay any maintenance charges from their proportion. This was the first step towards establishing on a definite tenure five settlers who have dependent on them five adults and eight children. The question as to what form this tenure is to take is still receiving consideration. The stock are in a healthy condition, and comprise 177 dairy cows and 18 dairy weaners. The general health of the people has been good. There was an outbreak of typhoid near the locality, but it speaks well for the health conditions on the scheme when it is recorded that none of the dependants was affected. The housing conditions are satisfactory, and three milking-sheds were erected during the year. Kawhia. The Kawhia scheme, situated on the west coast in the Kawhia County, embraces an area of 4,195 acres, of which approximately 2,850 acres are under active development. The class of soil varies considerably from good heavy loam to limestone country. Fifteen farms have been established, and most of these are carrying breeding-ewes in addition to dairy cows. This arrangement has proved satisfactory not only as a means of controlling ragwort, but also from a financial point of view, as the revenue from the sale of fat lambs has been considerable. This year it has been decided to purchase two-tooth ewes and pasture them with Romney rams, in an endeavour to eliminate the necessity of purchasing old ewes each alternate yeaj - . Twelve of the settlers have been dairying for some years and are now in a position to rear their own replacements. The scheme maintains 87 adults and 115 children,

4—G. 10,

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