c—a

At the outbreak of war, however, it was necessary to implement this policy in Southland, where most mills were working at only a fraction of their normal capacity; and although the operating ratio of rimu units was much improved by zoning the Dunedin market from Westland to Southland and Otago sawmillcrs as discussed in the last report, the supply of boxing-timbers continued much in excess of demand, and the suspension of State milling activities in Southland initiated last year was continued. In the North Island the supply-demand conditions for exotic timbers have presented a sharp contrast, and but for the operation of the main Waipa and the portable Waiotapu State mills it would have been necessary to import several million board feet of boxing timbers to meet the acute shortage which otherwise would have developed. 65. The Waipa State mill, the engineering features of which, are discussed elsewhere, constitutes the Department's major exotic forest milling unit. It commenced operations on a preliminary scale in June, 1940, but by October continuous production had been established at a level representing 125 per cent, of the original planned daily capacity of 20,000 board feet. Production has since been maintained at the 25,000 board feet per day level as a war effort to expand production of insignis pine, but this represents the practicable maximum if the mill is to be assured of perpetual log supplies and the Whakarewarewa State Forest managed on a sustained yield basis. Logs sawn in the mill vary from 6 in. to 26 in. in diameter, with an average of about 14 in., and rate of production naturally varies with size. A maximum daily output of 35,000 board feet was secured while sawing logs 12 in. to 15 in. (top diameter). The maximum four-weekly output of 558,000 board feet was attained for the period ended 31st March,,, 1941, and represents an average daily capacity of almost 28,000 board feet. On the smallest-size logs the daily capacity may fall as low as 15,000 board feet. Owing to the relative sparsity of large-diameter logs, the percentage of wide timber was not very high. Sales under 6 in. wide totalled 1,265,000 board feet, representing 49 per cent. ; over 6 in. but under 9 in. wide, 1,088,000 board feet, or 42 per cent. ; and widths exceeding 9 in., 221,000 board feet, or 9 per cent. Production of sawn timber amounted to 4,064,000 board feet, of which 2,574,000 board feet was sold, and the balance used or stacked in the air-seasoning yard for subsequent utilization in the box-factory. Stock on hand at the 31st March, 1941, totalled 1,310,000 board feet. The output consisted almost wholly of insignis pine, only negligible, quantities of Corsican pine and European larch being dealt with. Details of timber sold were as follows : — Green sales .. 1,355,000 bd. ft. £9,940 (14s. Bd. per 100 bd. ft. f.o.r. Rotorua). Air-dry sales .. 664,000 „' £6,507 (19s. 7d. „ ). Kiln-dry sales .. 555,000 „ £6,082 (21s. lid. ). Total .. 2,574,000 „ £22,529 (17s. 6d. „ ). Representing commitments entered into soon after the commencement of sawing and prior to the expansion of the local demand by recent war developments, 323,000 board feet were sold to Australia. 66. The Waiotapu mill, one of the portable circular type, operated throughout the year, and from 11th November, 1940, to 14th March, 1941, a double shift was worked on account of the acute demand for insignis pine, but the difficulty of securing suitable labour led finally to the abandonment of the second shift. Originally established to supply the heavy constructional timbers for the large Waipa mill, &c, the mill has since been engaged on the salvage of insignis pine from a stand which threatened to become a serious loss owing to lack of early silvicultural treatment. Logs were even smaller than at the Waipa operation, and a low average width of sawn timber was secured. Timbers sold under 6 in. wide totalled 614,000 board feet, or 73 per cent. ; those over 6 in. wide but under 9 in. 9 in. wide, 213,000 board feet, 6r 26 per cent. ; and widths greater than 9 in., 10,000 board feet, or only 1 per cent. With circular sawing it is not possible to secure widths from small logs yielded by a log frame ; and this accounts for the much greater proportion of widths greater than 6 in. which were obtained at Waipa.

4—C. 3.

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