STATE FORESTS

Hokitika Guardian, 11 October 1927, Page 2

STATE FORESTS

IS COST OF SERVICE EXCESSIVE?

WELLINGTON, Oct. 7

A searching investigation into the operations ol the State 1* orest feeivice, which he declares to be overdue, is advocated by the president of the New Zealand Timber Growers’ Association (Mr W. McArthur). He stated to-day that grave dissatisfaction with the conduct of this branch of the Government’s service was general throughout the forestry and timber-milling industry of the Dominion. He contended that according to the Forest Service’s accounts there was a startling discrepancy between the actual cost of establishing one acre of plantations and statement made in its annual repoit. Mr McArthur said that when the report of the State Forest Service was recently presented to Parliament a considerable amount of prominence was given by the Press to the statement made by the Director of Forestry that the cost of establishing one acre of State forest plantations fell from a little under £l9 in 1921 to £1 15s in 1927. The basis of the Press reports was apparently a graph in the report which showed the average cost of establishing one acre at £1 19s for the four-year period 1924-1927. ** To members of our Association who have a knowledge of forestry costs,” lie said, “and who are to some extent acquainted with the operations of the State Forest Service, such low phintin costs appeared to be almost incredible. The report for 1927 has now been circulated and an examination of the audited accounts reveals a most startling discrepancy between the actual cost according to the accounts and the .statement made in the report as to the average cost per acre. The audited statement shows the cost of establishing one acre of State Forest for the four-year period 1924-27 to be £6 2s. This cost, of course, does not include price of land, interest, taxation, etc.

“ I find on closer examination that for the four-year period under review the sum of £74,358 was spent by the Service in collecting £401,473 of capital from the sale of our native forests. In other words, to collect £1 of this capital it has cost 3s Sd. For the year ending March 31st, 1927, the cost of collecting £1 of forest capital nas 4s lid, or nearly 25 per cent. These aro already excessive figures, so that further charges would he beyond the hounds of reason. It will thus be seen that the audited statement of accounts shows the average cost of establishing one acre of forest exclusive of the cost of land, interest, etc., for the fouryear period 1924-27 to bo £6 2s and not £1 19s as shown by the graph appearing in the report. In other words, there is apparently a total discrepancy for the period of £224,975.”