a—3

2. Finance. Receipts. Gross receipts exceed those of last year by £8,469, the increase being due to logging activities in the Rotorua Region and increased demand, mainly in the Southland Region. Appended is a summary of the main items : —

Payments. The net expenditure of £422,073 shows an increase of £124,214 over the previous year. This is chiefly attributable to the expansion of the Service in preparation for milling operations both on indigenous forests and on plantations which, although ultimately to be revenue-producing, are as yet incomplete.

A table showing the expenditure for the last four years, under main headings, is appended.

3. Recreation. Improved road access, together with motor transport, have generally developed camping and widened the field of the recreational use of State forests. Every year increasing numbers of persons enjoy the privileges and facilities afforded by the Service to visit and camp in suitable State forest areas. The protection of State forests from damage by fire and vandalism with this greater recreational use necessitated constant attention and vigilance by local forest officers.

32

Item. I 1938-39. j 1937-38. 1936-37. 1935-36. I I Indigenous forests receipts — £ ! £ £ £ Timber sales .. .. .. 103,394 96,741 91,980 74,828 Timber royalties and trespass .. .. 9,300 8,151 6,257 5,006 Leases, grazing .. .. .. 1,445 1,493 1,692 ] ,757 Sawmill-sites, industrial, &c. .. .. 1,616 638 705 957 Miscellaneous.. .. .. .. 6,673 4,934- 4,252 2,844 National Endowment Account allocation .. 20,085 24,756 21,807 15,712 Nurseries and plantations — Trees and seeds .. .. • • 1 Firewood and poles .. .. 11,224 8,555 7,097 5,874 Miscellaneous .. .. .. • ■ J Totals .. .. .. 153,737 145,268 133,790 106,978

Item. 1938-39. j 1937-38. 1936-37. I 1935 36. Fixed charges and staff salaries— £ £ £ £ Interest and expenses of raising loans .. • 278 263 801 525 Staff salaries .. .. .. .. 63,422 57,185 51,616 41,374 Allocation of revenue' — National Endowment Account .. .. 18,712 16,458 10,934 7,117 Local-body payments, &c. .. .. 12,556 16,329 16,739 9,243 Management, establishment, and development — Indigenous forests .. .. .. 47,765 22,205 17,863 14,763 Fire-fighting equipment and prevention .. 955 887 415 415 Educational: Reference library, &c. .. 534 341 194 260 Research and experimental equipment, &c. 1,318 988 567 836 Afforestation: Nurseries and plantations.. 214,721 177,141 139,761 60,642 Land-purchase .. .. .. 8,901 1,110 .. 70 Miscellaneous .. .. .. .. 134 79 84 500 Sawmill and creosote plant, &c. .. 52,777 4,873 Totals .. .. .. 422,073 297,859 238,974- 135,745