POTENTIAL VALUE OF DOMINION’S EXOTIC FORESTS EMPHASISED

Bay of Plenty Beacon, Volume 14, Issue 28, 22 August 1949, Page 5

POTENTIAL VALUE OF DOMINION’S EXOTIC FORESTS EMPHASISED

Discussion On New Forestry Bill

i (Special to Beacon) \ Wellington, Tuesday. \ The commercial potential value of the forests in the Bay r of Plenty area was emphasised fay Mr W. Sullivan (National, Bay ol; Plenty), speaking in the second reading debate of the Forests Bill in the House of Representatives. He pointed out that in that area there were vast areas of both indigenous and exotic forests, and naturally he was greatly interested in forestry matters. The Bill gave the Director of For_ cstry power to' generate electricity, and power to sell any surplus electricity that he might develop. “I presume,” said Mr Sullivan, “that this authority is largely associated with the project which is contemplated at Muir up ar a, in the Bay of Plenty area. In my territory there is a widespread interest in the contemplated scheme of making newsprint and pulp and manufacturing timber products generally. While r there may have been, and may still be, some more or less misinformed criticism of this scheme, I say quite candidly that, although I know nothing about the economics of it, there are vast areas of forest planted over the years which are now rapidly coming to maturity. ‘lt does not matter whether the forests belong to private, individuals, private corporations or to the State, we have reached a stage in that territory when the products of those forests have to be used. I feel that the scheme should be supported by every one until it has been proved uneconomic or that it is likely to be unsuccessful. “The forests in that area are .growing much more quickly than they are likely to be used, and in developing a project such as is ariti_ cipated at Murupara I believe we are developing a manufacturing industry which will be natural to our primary industries. So, provided we can run the business successfully and in a competitive manner, there is every jurisdiction to believe that the scheme will eventually be a tremendous success.” .Railway Problems A railway survey had been made, Edgecumbe to Murupara, but a line already existed, owned by a combination of companies called the Matahina Tramway Company, and it appeared that there was a possibility that that line, 11 or 12 miles . long, might be available for part of the route. It would be criminal to cut up those farms and create another stopbank in that area, which could become bottleneck if ever the Rangitaiki river overflowed its banks. Mr Sullivan said many would be interested to know whether the . Murupara development scheme was to foe a complete . State-managed concern and completely State-own-ed, or a combination of St,ate ownership and private enterprise. A combination of that sort, with a directorate and management comprised of both sides would give the set-up most likely to be successful. The possibility of success would certainly be much greater than with a purely State managed concern. To justify the establishment of the Murupara mill one had simply to look at the achievements of Whakatane Board Mill. That company set up in business against great opposition, yet had rendered great service to the Dominion. Had it not operated during the war no cardboard would have been available in New Zealand. -It had also been a great employing agency both in the Borough of "Whakatane and in the outlying district. Thus the Whakatane Board Mill had played an important part in the rapid development achieved in that Borough in recent years. Australian Market “With the knowledge that our indigenous or native forests are being gradually cut out, I have alv/ays held the view that we still have a fortune in our planted forests,” said Mr Sullivan. “Recent negotiations have disclosed that Australia will take enormous quantities of pinus if we can supply the timber. Now that those forests were coming into production, the State and also private interests should see that the Australian market was satisfactorily supplied. Recently he was inform, ed that the Australian market would take as much as 300,000,000 feet a year if it could be supplied. That was a direct indication of the need

for an establishment, such was expected in Murupara, with a rail link to Tauranga as a port to feed the overseas market. Mr Sullivan drew attention to how the alteration in the exchange rate had affected the timber trade with Australia, pointing out that it

showed that care must be exercised if we wanted to build a worthwhile overseas market for products for which we had a surplus, and it also showed that the Government and all those responsible for the management of the internal economy of the country must take a very wide view and ascertain what repercussions the industry might suffer by such ill adjustments coming about so quickly. Road Royalties

“I should like to know why our exotics or artifically planted timber should be exempt from the payment of iroad royalties,” said Mr Sullivan, referring to timber royalties to be applied towards the cost of road-making and maintenance. “I emphasise, and I think the Minister knows the position fairly well, that in the Murupara, Te Whaiti and Minganui territories there aire extensive sawmilling operations, and I think I am safe in saying that something like 7,000,000 or 8,000,000 board feet comes out of that area every year and is railed from the Edgecumbe station. All that indigenous timber has to bear road royalty payments, and if exotic timber is to be carried over the same roads without paying any royalty I should like to know how the local authorities will obtain sufficient revenue to maintain the iroads in good order. In many territories where we have exotic plantations the country is more or less second class, low value country. Consequently the rates derived from that country are also very low, and the general urates do not yield sufficient revenue to enable the authorities to maintain the roads in good order. Certainly, the land should not be expected to maintain the roads in a state to deal with such heavy traffic.”