STATE FORESTRY

Dominion, Volume 36, Issue 27, 27 October 1942, Page 4

STATE FORESTRY

Financial Objective Of Operations

"The basic financial objective of forest policy is to make State forestry operations at least a self-supporting activity, if not ultimately a contribution to the general revenues of the country,” states the annual report of the Director of Forestry, Mr. A. R. Entrican, for the year ended March 31 last- “While this appears possible on a basis of pure revenue and expenditure, it is just as impossible for revenues to meet past expenditures compounded at 4<} per cent. “Actually in some current sales of forest produce recoupment of the accumulated debt against some good forest is being achieved, but there are many poor compartments and forests Which must contribute a heavy loss,” says Mr. Entrican. “Typical of the former are sales of clear-cut larch from compartments carrying an accumulated charge of £6O per acre, but increased to £BO to cover failed areas in the same forest. Measured as a stand of 3200 cubic feet, the timber is sold on a royalty basis of 6<l. per cubic foot, which is equivalent to a royalty of 10/- per 100 board feet —an excessively high figure and a good reason why national forestry expenditures should not bear interest compounded at 44 per cent. “In contrast, a poor forest—e.g., Dumgree (Nelson Conservancy), established in 1903—carries an accumulated debt of £62,918, of which £46,765, or over 74 per cent., is accumulated interest, and is unlikely ever to yield a revenue equal to even 5 per cent, of the accumulated charges. Representations to deal with such cases are being made, but a reliable financial survey of the whole of the exotic forests will only be possible with the completion of assessment surveys and forest-management plans now seriously delayed by the war.”