FORESTS AND FORESTRY

Hokitika Guardian, 6 September 1923, Page 2

FORESTS AND FORESTRY

FORTH Ell NOTES ON THE DIRECTOR’S REPORT.

The report of the Director of Forestry is divided into five chapters, and six “aiinexurcs.” and it is noticeable throughout that the Service dearly loves to call a spade "an agricultural instrument”—a very superior Department. this Forestry Service.

Chapter 1. is deboted to. or rather it is entitled, “Accomplishments.” It is significant, however, that while the report as a whole embraces 3!) pages, a little more than one page anil a-half lias been sufficient, in spite of the meaningless verbiage usually imported, to record the accomplishments of the Service. The balance of the 30 pages is largely devoted to what may he done in the future.

The claim that “the Service has made good its promise of 1.92] to make the national forest programme pay its way this year,” will be open to question, especially hv those who are otilooking proceedings in this great forest tract or New Zealand. In the first article there was a reference, to the practice of treating proceeds from the sale of assets as profit, or revenue; and it will be necessary now to bring forward some of tbe statements contained in the latter part of the report, instead of dealing with them in the order in which they are presented in the report ; so that these will he a test to the justification of the above claim by the Service as to paving iis way.

First examine the “State Forest Account.” This is merely a “Receipts and Payments Account." and a. “Loan Account.” There is not any assets account, sucli as would ho contained in any commercial statement of accounts. It is a very bald statement of finance. Amongst tbe receipts for the year, under the heading “Revenue,” is the item “National Endowment” £3,33(5 Gs 9d. Now, under “The State Forest Act 1922'” the Forest Service is entrusted with the administration of any National Endowments which it may. by virtue of powers given under the said Act, include in the State Forests: and provision is made that, after deducting the cost of administration, one halt ol any revenue is to be paid into the National Endowment Account. As there is no such payment to the National Endowment Account appearing in the Forest account under review, it follows that one of two things has happened; that >.. either a payment that should have been, or that will have to be made, is not taken into account, or, the cost of administration has up all that has been realized from National Endowments so administered. Seeing that these operations seriously affect Old A«'C Pensions and Education, in whoso”intorcsts National Endowments were established by tbe Liberals, it will be interesting to see bow tbe bodies entrusted with education and old ago pensions will accept sucli mal-udministra-tion coupled with tbe depletion of their assets. What do the Ministers in Control of Education and Pensions say about the minus funds? Under “Revenue.” also appear “Timber Sales £38,351 Is sd” and I ini--I,ei Royalties £6.92G 4s Bd.” That total. £45.277 Gs Id. is distinctly assets realisation : and there is tbe furthei item “Timber Trespass £2.185 8s Od. which is most probably the charge for timber taken without authority; and it so. should be added to the foregoing, making a total of £47,4(12 14s Id. I lie lost of the items under “RevenueJTom State Forests” amount to £6,597 10s 3d. Of this amount, however. “Opossums revenue. £l,lOB 0s Od.” is purolj derived from tbe past activities of Acclimatisation’ Societies. Fnder tho Re venue from “Nurseries and Plantations, £7,483 19s 7<l” we notice the item “Sheep, sale of. £7Ol 13s: lOd.” There is no indication that these sheep were paid for during the year under review ; so. presumably, they came forward as assets from a previous year. Practically, the same may he said of the item “Trees—£4.Bßo 17s Id.” It is therefore quite manifest that the revenue f,om State Forests is not more than £5,489 40s 3d; and from Nurseries and Plantations is not more than £1,(91,Ps 8(1. Taking also into account the verv doubtful item “Mackenzie County Council. £237 4d (id. wo have a grand total of revenue amountingjietually to £7.518 3s sd, and not £63,373 5s 4(1 as stated in the account.

Against the “Receipts” item “Revenue” V have on the other side of the account, under “Operation and maintenance charges” an amount of £38.:)f,G 17s Id—leaving a debit balance of £30,838 13s Bd. and on those figures (he Service claims to have made good. Beyoiul the cost of collecting that actual revenue, the Service is entitled to some commission for selling £4.,4b'14s Id worth of assets; hut surely nearly two-thirds of the total is a rather tall commission. Of the £38.356 lis Id expenditure it should he noted the amount, does not include salattosol other expenditure .on reafforestation (the most important work of the Department). which have been charged m capital charges. 'J he State Forest Account, as appearing in the report, is. indeed an “accomplishment” in so far as it >**- clouds the true state or affairs. But there are more “accomplishments to come! ______