(jr.—lo.

During the year 85 acres were cleared, and of this 20 acres have been ploughed and sown down ; 50 chains of new fencing have been erected ; 160 chains of drain cleaning and deepening have been effected ; a new store-shed has been erected ; and a new house and cow-shed provided for one of the settlers. The stock as at the 31st March included 27 cows, 38 other dairy stock, 79 run cattle, 357 breedingewes, and 552 dry sheep. Employment was provided for sixteen men who support thirty-four dependants. Maketu : Waewaetutuki. Steady progress has been made in the development of this block of 767 acres, most of which is swamp country situated near Maketu, on the Waihi Estuary. The work carried out during the year consisted of 120 chains of new drains, the cleaning of 40 chains of existing drains, 40 chains of road-formation, 75 chains of fencing, the clearing of 50 acres, .15 acres of ploughing, and the sowing of 5 acres in grass. A number of cattle from the Maketu scheme was grazed on Waewaetutuki from, time to time during the year. It is proposed during the coming year to erect a cottage for the foreman and to provide a cottage and milking-shed for one settler who is being established. This project provided work for ten workmen, and in all seventeen adults and eighteen minors have been dependent on the scheme. Pukehina. The Pukehina development scheme, gazetted in June, 1937, comprises 590 acres, and is situated on the north and south sides of the main Whakatane-Te Puke Road. This land is ideally suited for dairy-farming, and when fully developed, will carry one cow to 1| acres. This block was previously farmed with assistance from the Waiariki District Maori Land Board, and when brought under the development policy, 190 acres were in grass. A further 60 acres has been cleared and sown down, 100 chains of new fencing erected, 160 chains of drains cleaned and deepened, and 40 chains of new drains dug. Three settlers are now farming on this area, and. it is proposed to establish another one during the coming year. Two of the settlers are milking, and a cow-shed has been built for the third, who will commence dairying this season. The live-stock on the scheme comprised 95 dairy cows and 34 run cattle. It is intended during the ensuing year to graze approximately 150 sheep on this area to check and control ragwort, which is making an appearance. Work has been provided for seven men, and the scheme supports in all eighteen adults and twenty-six minors. Matata. Comprising 3,559 acres, of which 2,800 acres are suitable for development, this scheme (also known as Hauani) is situated on the coast between Whakatane and Te Puke and approximately eighteen miles from the former township. The block consists of approximately 2,000 acres of flat tablelands bisected by dry gullies, 1,200 acres of flat and undulating country, and 400 acres of steep hills. The whole area is composed of a light pumiceous loam on a light sandy subsoil. Development activities are at present being confined to the subdivisions of Lot 63d, comprising some 1,390 acres. Five settlers are established, and their dependants number ten adults and eighteen children. Their health has been good throughout the year. There are 216 acres in permanent pasture, 80 acres ploughed and sown, and a further 100 acres ready for sowing. On the settlers' areas sufficient hay has been saved to carry stock through the winter. A length of 30 chains of new roading has been formed, and a survey of available water to give a supply to the main Hauani Block has been made; the estimates for this latter work are now being prepared. The following was the stock carried on the scheme as at 31st March : 45 cows, 28 heifers, and 278 wethers. Reasonably good progress is being made on this scheme, the nature and quality of the soil making development slower than in other parts of the district. Although the country is somewhat sheep and cattle sick, it is considered that the greater part of the area can be brought into good pasture suitable for dairying, and that with judicious care any sickness can be combated. Putauaki. This scheme, situated close to the Township of Te Teko, about fourteen miles from Whakatane, with an additional large area near Putauaki (Mount Edgecumbe), and across the Tarawera River, is making favourable progress. Of a total area of 9,565 acres, approximately 6,000 acres are suitable for development, the remainder being steep and more suitable for afforestation. There are 300 acres of good-quality swamp land with satisfactory drainage facilities, 4,000 acres of flat to undulating country with Tarawera ash on a light clay, and 800 acres of ploughable hill country. The area in its natural state was covered in light manuka and fern with patches of heavy bush on the hills. The permanent pasture extends over 500 acres; there are 40 acres in crops ; while 400 acres are ready for sowing this autumn. At present eleven settlers are established, and the holdings of an additional six are being worked this season, on which latter sections milking should commence next spring. Their dependants number thirty adults and seventy-three children. Very little sickness was reported during the year, the health of the people being good.

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