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Service and the Industries and Commerce Department. This Committee, however, continues to function in an investigative and advisory capacity to the Price Tribunal set up to administer the Emergency Regulations. Section H. —Centennial Exhibition. 95. As an exhibitor in the New Zealand Centennial Exhibition, 1940, held at Wellington during the period Bth November, 1939, to 4th May, 1940, the Service combined with several other Government Departments in a composite display illustrating in historical sequence the process and progress of land-development in the Dominion over the past century. The Service also co-operated with the Timber Development Association, which embraces sawmillers, boxmakers, merchants, and allied trades, in an industrial display of wood products. Section I.—Timber Emergency Regulations. 96. The Timber Emergency Regulations 1939 came into force in September last and provided for the appointment of a Timber Controller, authority for the control of forests (sale and purchase thereof), the regulation and control of timberworks, and the control of timber materials. By notice dated 4th September, 1939, and published in the New Zealand Gazette, page 2408, the Director of Forestry was appointed Timber Controller. A notice under the Supply Control Emergency Regulations 1939 instituting control of the use of redwood and Oregon (Douglas fir) imported timbers was published in the New Zealand Gazette, 1940, page 705. 97. Production being much in excess of demand in the Otago and Southland Districts, and the reverse operating in Westland, the Dunedin market was zoned entirely to the Southland and Otago mills, thereby enabling the West Coast mills to export increased quantities of rimu to Australia. Following the outbreak of war the construction of many additional buildings for defence purposes became an urgent necessity, and it is estimated that these works absorbed 15,000,000 board feet of timber; of this quantity it was possible to use at least 8,000,000 board feet of slow-selling stocks valued at over £80,000. In February last the fruit industry was threatened with an acute shortage of boxes, due to the fact that certain boxmakers had undertaken to supply orders much in excess of their capacity to do so. To overcome the difficulty it was necessary to invoke the powers of control given by the regulations, and in consequence some manufacturers were required to make fruit-cases exclusively for two months. Formal control measures have only been taken as a last resource, the general aim being to so administer the regulations as to cause a minimum interference with trade and to achieve the desired objective by negotiation or voluntary agreement. Section J. —Export Butter-box Pool. 98. The Service continued to co-operate with the New Zealand Dairy Board in the purchase and distribution of export butter-boxes in the North Island. It was estimated that dairy production during the 1939-40 season would show a slight decline when compared with the 1938-39 output, but contrary to expectations a rise occurred and provision had to be made for 5,179,000 boxes for North Island factories instead of 4,320,000 as was anticipated. This unexpected demand seriously depleted reserve stocks of boxes, of which 470,000 were in hand at the commencement of the season. Steps are being taken to supplement the surplus of white-pine timber for nextseason by manufacturing 500,000 boxes out of sap rimu. The total quantity of white-pine delivered to North Island boxmakers was 19,092,000 board feet, of which 7,903,000 board feet came from South Island mills. Section K.—Commercial Afforestation Companies. 99. Inquiries concerning the operations of commercial afforestation companies in the Dominion continue to be received from home and abroad ; these should be addressed to the Commissioner of Stamp Duties, Wellington, C. 1. According to information furnished by the Government Statistician, the area planted by these companies at 31st March, 1938, was 310,253 acres, which was increased during the year by 192 acres, making a total of 310,445 acres at 31st March, 1939.

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