G.—lo.

Land Board. Financially the scheme has been anything but a success, but from a humanitarian point of view the expenditure incurred has no doubt been the means of rehabilitating a tribe who were formerly living in abject poverty. It has provided wholesome work and a means of livelihood for a population of 320, who are entirely dependent on the scheme. To-day these people are a healthy and happy -community with some hope of future independence. The Maori Land Board maintains a cream-transport service to Awanui —forty-five miles incidentally supplying the wants of the scattered European settlers en route, and also runs a store which supplies the needs of the settlement. It has, in addition, erected a communal hall with diningroom and kitchen attached to meet the social requirements of the people. Much further capital is required to complete the development, and in order not to overstrain the finances of the Maori Land Board the scheme has been taken over by the Board of Native Affairs, who will complete it. The financial loss rests with the Maori Land Board, who are asking the Government to compensate them for their efforts in what was in reality a national responsibility. The scheme comprises 4,325 acres, and of this 1,346 acres have been grassed. There are fifty - two settlers, and of these thirty-nine are supplying the factory. Altogether the area is carrying 501 dairy cows, 460 other cattle, 21 working-bullocks, and 57 horses. The rainfall this season was deficient, and the pastures suffered accordingly. This autumn a further area of 146 acres was cultivated and sown in grass. Expenditure in the future will be largely for the erection of houses and the purchase of manure, while development work will be found for all available labour. A progressive housing programme is planned for the ensuing year. Dairy returns are insufficient to provide a livelihood for the people, and as a temporary measure, the deficiency is made up by the granting of employment-relief contracts, but a policy of gradual reduction in this form of assistance is aimed at in order to ensure an increased production of butterfat and to instil a spirit of self-reliance amongst members of the community. Morikau Station. This station, containing 11,806 acres, is situated on the Wanganui River, about forty-seven miles from Wanganui, and adjoins the Ranana development scheme. The lands comprising the station, being portions of the Morikau No. 1, Ranana, and Ngarakauwhakarara Blocks, are vested in the Aotea Board, by whom it has been farmed since 1910. The area under pasture is 5,987 acres, and further areas of bush totalling 107 acres were felled during the year, the Board's policy being to fell a limited : 'ortion each year and thus gradually extend the station's activities. The live-stock as at 31st March, 1938, comprised 13,883 sheep, 1,205 cattle, and 32 horses. During the year 6,623 sheep, 423 cattle, and 361 bales of wool were sold at satisfactory prices. Morikau stock continues to be sought after by buyers, while entries in the Wanganui Agricultural and Pastoral Show, and fleece competitions, were again most successful. The station and stock are in excellent condition and are a valuable reproductive asset for the Maori beneficiaries. The heavy programme of fencing has been continued and all fences are now in an excellent state of repair. MAORI LAND BOARDS : ADVANCES TO NATIVE SETTLERS. In addition to major undertakings of the Maori Land Boards, the following table indicates the measure of assistance granted to individual Native farmers for the purpose of developing and cultivating their lands.

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Total Advances to Native , T , „ ,. Board. Settlers under Mortgage Number of Native as at 31st March, 1938. Mortgagors. i ; " £ Tokerau . .. .. 2,902 7 Waikato-Maniapoto .. 6,586 25 Waiariki .. .. 10,517 25 Tairawkiti .. .. 60,119 83 Aotea .. .. .. 16,977 29 Ikaroa .. .. 24,727 47 South Island . . .. 3,897 8 Totals .. .. 125,725 224