C.—3

(c) Timber Control Notice No. 51 (Gazette, 1942, page 2825) requires that insignis-pine (Pinus radiata) timber shall not be cut, sold, or used except for the manufacture of wooden containers without the precedent consent of the Timber Controller. The provisions of this notice were relaxed during the latter half of 1944 when demand for insignispine timber for essential foodstuff containers eased, but early' this year the Dominion was called upon to execute new and heavy contracts for export foodstuffs which required the bulk of the insignis pine produced to be used for the necessary containers. Consequently a letter dated 29th March, 1945, was sent to all insignis-pine sawmillers advising that the provisions of the notice were reimposed and that permits for the use of this timber for other than the manufacture of wooden containers would be granted only in exceptional cases. (d) Delegation of Powers of Timber Controller : By notice dated 28th August, 1944, issued pursuant to Regulation 4 of the Supply Control Emergency Regulations 1939, the Timber Controller delegated to Bertrand Walsh, of Hamilton, secretary of the North Island Sawmillers' Distribution Association, powers to act for the Timber Controller as directed in the regulation and control of the sale, supply, distribution, and disposal of sawn timber within specified counties in the central North Island and Bay of Plenty districts. («) Supplies of Seasoned Timber : During the emergency period when a heavy demand existed for timber for defence units it was found necessary to direct timber-supplies to approved dry kilns throughout the Dominion. This policy made available a maximum quantity of seasoned timber, and undoubtedly avoided serious dislocations in the wood-using industries. In continuation of the policy of removing control as soon as circumstances warrant, sawmillers during the year were relieved of directions to supply timber to kilns in Hamilton and Napier. It is hoped that during the current year it will be possible to uplift similar directions regarding the supply of timber to other centres. 107. Removal and Erection of Sawmills Notice 1941 (Serial Number 1941/236).—A total of thirtyfive consents to the removal and erection of sawmills was given under the provisions of the Notice, fifteen being for the erection of new mills and twenty for the removal of existing sawmills to new sites. In view of the continued man-power shortage in established sawmilling units throughout the Dominion, all applicants for consent under the notice were required to give assurance that they could secure the necessary operating staff without having to engage workers already employed in the sawmilling industry. Two consents were issued for the erection of sawmills for the cutting of insignis pine to be secured from forests owned by afforestation companies. In view of the fact that the forests are comparatively young immature stands, the consents were conditional upon the installation of sawmills containing reasonably suitable equipment —under present conditions—for the economical conversion of the small timber involved. So far as equipment can be secured, it is required that such mills shall include Pacific breakdown bench, breast bench, and deal frame, the use of which should reduce waste to a reasonable figure. In view of the extremely high fire risk in exotic forests, millers are also required to take appropriate precautions against fire and to provide adequate fire-fighting equipment. 108. Sale and Purchase of Forests.—ln terms of Regulation 3of the Timber Emergency Regulations 1939 (1939/148), 520 (357) applications for consent to the sale and purchase of forests were dealt with during the year, and consents issued. The transactions involved fall into three groups : — (a) Privately-owned Forests.—The continued urgent demand for timber-supplies for the manufacture of munitions and foodstuff containers was again reflected in the numerous applications for sale and purchase of privately-owned insignis-pine trees, chiefly from small farm lots and shelter-belts. As reasonable supplies of logs have been made available by agreement between owners and sawmillers, it was again unnecessary to use the compulsory powers of the Timber Emergency Regulation 1939 whereby the Timber Controller may by notice require an owner to dispose of his trees to such sawmiller as the Controller may nominate. In some cases, farmers would have preferred to retain trees on sentimental grounds, but, recognizing the necessity for maintaining maximum production, trees were duly made available, and the co-operation of the farming community is acknowledged and appreciated. In order to avoid an important sawmill closing down owing to an occupier refusing to renew an easement over his property it was necessary to use the compulsory powers of the Timber Emergency Regulations 1939 as amended, 1943/106, and to authorize the sawmiller to continue the use of his access. (b) Maori-owned Forests. —Four cases affecting Maori-owned forests in Rotorua, Wellington, and Southland Conservancies were brought under action during the year. Urgent supplies of logs were required in all cases to keep sawmills in continuous production, and as there was insufficient time for negotiations in the ordinary way arrangements were actioned by the issue of notices under the Timber Emergency Regulations 1939 requiring the Maori owners to sell their interest in the forests affected to the proprietors nominated by the Timber Controller. Upon the expiration of the period of twentyone days for the receipt of "objections provided by the regulations no well-grounded objection was received, and the transactions are therefore being completed. The sawmillers concerned have been authorized to commence cutting. It is emphasized that in all such cases the interests of the owners are protected by suitable terms of payment and conditions of operation. The value of the timber in the forest is fixed after appraisal by the Forest Service in accordance with established procedure in respect of all Maori-owned forests, and the instruments of sale are subject to confirmation by the Native Land Courts. Following direction notices issued during the preceding year, three licenses for the sale of forest and one for a road easement givitig access to one of the forests sold in the Wellington Conservancy were issued and subsequently confirmed by the Native Land Court,

24