G.—lo.

A Pig Club has recently been formed in the area, under the auspices of the National Pig Industry Council. This is a welcome addition, as it will enlarge the scope for further systematic instruction in pig husbandry and ensure the right type of carcass being produced for export. It is satisfactory to note that, the settlers, with a very few exceptions, are responding to instructions and appreciate the advantage of supervision. Many Natives established at the inception of this scheme are now efficient farmers. Ngatimanawa. Gazetted in January, 1937, the Ngatimanawa (or Murupara) scheme is.situated some forty miles from Rotorua on the main Rotorua-Waikaremoana Road and adjoins the Galatea Settlement. The area gazetted is 6,319 acres, of which 4,000 acres are capable of development. The country consists of tablelands of pumice formation with light scrub and fern, extensive flats of shingly formation along the Whirinaki River, and good alluvial flats along the Rangitaiki River. Of the area suitable for development, approximately 2,000 acres comprise unimproved country at present in Native grasses. The development operations have been carried out by members of the Ngatimanawa tribe, and work has been given to thirty-seven men who support 175 dependants. The health of these people is good, and to ensure that this is safeguarded the people have generously made available a section for the District Nurse's residence. The house has now been completed and the District Nurse is in occupation. Owing to a shortage of carpenters, no scheme houses were completed during the year, but six dwellings are in the course of construction. During the period under review 800 acres were cleared and stumped, and of this area 420 acres have been put down in permanent pasture, 175 acres were ploughed ready to sow down, and 24 acres were sown in turnips, while a heavy fencing programme was carried out, 860 chains of new fencing having been erected. The river protection and groyning works carried out during the previous year proved invaluable in safeguarding the alluvial flats during the recent heavy rain and consequent flooding of both the Rangitaiki and Whirinaki Rivers. It is intended next year to develop these alluvial flats at present in Native grasses, and to carry out further river-protection work. The live-stock as at the 31st March, 1938, comprised 5 Hereford bulls, 203 run heifers, 60 steers, 1,302 ewes, 42 rams, and 22- horses. Since inception this scheme has absorbed all the Native labour in the district. When fully developed the area will be subdivided into dairy-farms of some 80 acres to 100 acres, and the land should be capable of carrying one cow to lit acres to 2 acres. The initiation of this project satisfied a long-felt want of the Natives, and they have shown themselves to be keen and industrious in the development of their lands. The enthusiasm shown by the Natives reflects credit, and augurs well for the success of the scheme. Ruatahuna. Gazetted in 1931 and comprising 12,181 acres, of which an area of 7,000 acres is capable of development, this scheme is situated in the valley at the head of the Whakatane River, in the heart of the Urewera country. It lies 1,570 ft. above sea-level. The land is of light loam with a pumice subsoil, and approximately 2,500 acres are flat to rolling with the balance rising to high and steep hills. At this high elevation winter conditions are severe, and are the cause of the heavy death-rate in young stock and of the low lambing percentage. The country is suited for sheep-farming only, and, although deaths have been fairly heavy, these losses have been reduced as compared with last year, principally as a result of top-dressing and closer subdivisional fencing. Settlers, members of the Tuhoe tribe, have been located on twenty-three sections, and work has been found for thirty-four men, all of whom support 120 dependants. The wool output this season was forty-two bales. As the country will not stand a heavy capital liability, the Department has not erected any houses, but the workers have been encouraged to buy timber and build their own homes. These buildings, although small and with rough exteriors, are clean and comfortable inside, and are a great improvement on the dwellings which these people formerly occupied in the pa area. It is a pleasing feature to note the improvement in the health and dress of the children in this district. The work carried out during the year comprised some 700 acres of clearing, 783 chains of fencing, 63 chains of draining, and 52 chains of roading. Of the area cleared, 232 acres were surface sown and 120 acres ploughed and sown down in grass. This year, for the first time, 30 tons of hay were harvested to provide winter feed for the stock. The stock on hand as at the 31st March, 1938, comprised 286 run cattle, 8 Hereford bulls, 1,952 breeding-ewes, 899 M.S. hoggets, and 64 rams. The settlers, as yet lacking in farming experience and knowledge, are amenable to instruction, and are making an endeavour to co-operate and improve their conditions. Whakatane. Whakatane, situated in the district surrounding the town of that name, is solely a settlers' scheme, the gazetted gross area of their respective holdings being 304 acres, and the whole area is suitable for development. With the exception of 25 acres of easy hill country, the area consists of rich loam flats capable of carrying almost a cow to the acre. The scheme started operating in April, 1937, and should increase in area gradually as various leases expire and the land reverts to the Native owners. The present number of settlers is seven, who support

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