TIMBER COMMISSION.

Hokitika Guardian, 22 July 1924, Page 4

TIMBER COMMISSION.

RESULT 01-' ENQUIRY. WELLINGTON, July IS. II: • report of .Mr John Strachan, the Commissioner, who was appointed to enquire into the question of timber royalties and the effect upon local bodies’ revenues of (he Forests Act, l!i” lwas tabled in the House today. The Commissioner, after an exhaustive enquiry, finds that lie cannot point to any definite loss as the result of timber-cutting licenses being granted bv the Forest Service instead of being dealt with, as formerly, by the Land Hoards. In the Clutlm, Wallace, and Stewart Island districts fourteen licenses were issued by the Forest Service, covering 12,1 lit thousand feet of timber, which was sold for f!S()S!>. Possibly, had this land remained under the jurisdiction of the Lands Department, some of the timber would have been disposed o! on a royalty basis, and local bodies would have benefited. The amount of such benefit could not be determined. However, in the case of lands set apart under the War Legislation Act, IGI St. and the Forests Act, 1021-2”, the rights under sawmill licenses already issued are protected, and local body revenues will not .suffer, except where such licenses are forl.-it-ed or surrendered when the State lore>t reservation operates. In the matter of timber on lands unt’.-r mining wardens’ control, estimated at b,7-17,271 thousand feet, valued at CS7J,S27, local bodies would have bad reasonable grounds to -expect to receive half I he royalties therefrom, so long as the wardens’ control continued. Regarding provision in favour oi loeal bodies out of Forest Service I—\oniies to make up losses <;l revenue from royalties, the Commissioner does not consider any grant of a fixed charge justified. Ho limls that the existing system imposes a heavy tax on the Dominion’s timber revenue, and lias brought about inequitable distribution of State money. The extension of ••halves" to cover State forest land i- not recommended, as tending merely to intensify the unsatisfactory position. The original idea ol granting “halves was to assist to make good the damage to the roads by the heavy timber traliie. but the fixing of the amount at hall the royalty payable to the Consolidated Fund was inequitable. ’I lie damage caused to highways by the heavy trallie of any particular industry should I . chargeable to that industry through the medium of a heavy trallie tax. Local bodies in the areas alieeted by heavy traffic should collier with the object of recommending any amending legislation needed to provide efficient train., l-y but -. The previsiv' ol better roods was imperative, but the Commissioner could not see any logical reason why State timber sales should be singled out as a special source ol revenue for the upkeep ol (utility roads. The licensees of milling timber areas in Crown fore-ts were liable I) rales mi the limber, and on tin* land if they paid the rent, and to even up (In- position the area ot unalieiialed State land, including commercial forests not held under cutting rights, should he one of the factors considered in allocating the annual rate of suh--1 sidv provided h.v the Crown. I f no change is to he made in (he matter of timber royalties, the Commissioner suggests that the amount which each loeal authority is likely t:> receive should be taken into consideration u lien the annual subsidy is being allotted, SO as to ensure that counties receiving these revenues are not .securing an unfair advantage over counties where there is no limber revenue.