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log-supply for the Waipa Mill. From the Whakarewarewa and Waiotapu Forests, 192,587 cubic feet of logs (244,214) unsuitable for sawing were sold as mine props or delivered to the creosoting plant for production of treated fencing-posts. The wage-incentive plan was continued during the year in the Whakarewarewa Forest, three clear-felling and five thinning gangs participating. During the year a ■clear-felling gang commenced operations under the plan at Kaingaroa Forest, and, as at Whakarewarewa, the scheme has proved very successful. A total of £1,681 (£1,804) in bonuses was distributed, representing an average increase in wages of 6*B per cent. (7). 66. Waipa Milling Operations.—Overtime working has continued at the Waipa Sawmill throughout the year. The four log-frames operated on 259 days and produced 12,368,000 board feet of sawn timber, and the circular rig, which operated a normal shift on 259 days and a night shift on 212 days, produced 3,771,000 board feet. The total quantity of timber cut at the plant amounted to 16,139,000 board feet (13,757,000), a new record not only for this plant, but for all sawmills in New Zealand. Logs received for sawing comprised insignis pine, 76 per cent. (75); Corsican pine, 16 per cent. (17); and other species, 8 per cent. (8). The circular rig continued to concentrate upon the sawing of the larger and rougher insignis-pine logs, the overriding objective being the production of scantling for the building industry. The total production in widths under 6 in. amounted to 86 per cent. -(47) and in widths over 9 in. to 4 per cent. (20). In the log-frame mill, which aims at cutting a maximum of wide timber for the box factory, the production in widths up to •6 in. wide was 55 per cent. (46), and only 9 per cent. (16) was sawn in widths exceeding D in. The increasing proportion of timber cut in widths under 6 in. is due to the fall in the average diameter of logs sawn. This in turn is due to the fact that as the older Whakarewarewa areas are cut out the mill has to rely more and more upon the younger Kaingaroa stands. After the needs of the box-factory had been met, 7,814,000 board feet (4,968,000) •of timber was sold to merchants and wood-users. Although much of the timber was -disposed of in the Auckland Province, sales were made on an increased scale in the Wellington, Hawke's Bay, and Taranaki Provinces in order to demonstrate to users the quality of timber which could be supplied by careful adherence to good sawing, grading, and seasoning practices. Sales thus again recorded a substantial increase—this year 57 per cent, above last year's sales—and comprised green timber, 5,398,000 board feet (3,851,000); kiln-dried timber, 2,208,000 board feet (982,000); and air-dried timber, 208,000 board feet (135,000). Because of a slight improvement in space on trans-Tasman vessels, it was found possible to export 911,000 board feet (537,000) of kiln-dried timber to Australia, an appreciable contribution towards the quota of softwoods which it is necessary to ship to the Commonwealth in order to assure New Zealand of its essential hardwood requirements. Timber stocks held at the 31st March, 1947, totalled 2,987,000 board feet (2,804,000). Difficulties were experienced periodically throughout the year in obtaining an adequate and regular supply of railway trucks and on a number of occasions it was found expedient to load special trains during week-ends to relieve yard congestion. Since the mill reopened in January, continual difficulty has been experienced in this respect, and up till March the mill had been able to secure sufficient railway trucks to transport only half its current production. As similar difficulties were being experienced by other sawmills, the Government approved the use of subsidized road transport to carry timber in cases where the New Zealand Railways were unable to provide railway trucks. The •efforts made by the Railways Department to provide an adequate supply of railway trucks in difficult circumstances are fully appreciated by the State Forest Service. Timber filleted for kiln-drying totalled 7,126,000 board feet (7,355,000) and for air-drying 3,167,000 board feet (2,486,000). The balance of 5,846,000 board feet =(3,916,000) produced was sold or used in a green condition. The kilns dried 8,246,000

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