AFFORESTATION

Hokitika Guardian, 18 December 1933, Page 3

AFFORESTATION

The note ...of warning a«out afforestation costs sounded by Mr Hargest during the debate in the House estimates is one, says the Auckland Herald, which should be heeded. His statement .about the relative position of revenue and .expenditure is supported even by the Year Book, which says:—“The .revenue from indigenous forests is heayily .reduced by statutory .payent in, favour of local bodies, and the National Endowment Account, and during recent years the residue has been little more than sufficient .to meet the expenses of supervision and management; , consequently the establishment., of' ’ plantations has beeni financed almost exclusively from loan-moneys,” - The movements of. departmental revenue and expenditure in ..the past six years are shown by the'following table:—

. Receipts Payments 19.27-28 hA, £115,398; £263,331 1928- . . 90,114 325,331 1929- . . 105;637, - 427,418 1930- 84,715 393,085 v 1931- . . 55,558 ,275,1.77 1932 T 33 . . 45,105 . =212,383 The National Expenditure Commission pointed out that at the time it reported the department .was /carrying a capital obligation of some £1,857,000,, with an anmial, interest charge of approximately . . £IOO,OOO. The, .revenue earned did not cover the ordinary administrative costs of the service. . The commission suggeted, therefore, that interest was being paid out of loan money. That is a process which cannot continue indefinitely. It is operations of this character which delay the time when taxation, especially of the very oppressive sales tax type, can be reduced. It is evident the strong restraint ion such departmental spendnecessary in the interests of the overburdened taxpayer, necessary because of what the National Expenditure Commission revealed, is .not. being exercised. It is. to be hoped tliat/ the Minister of Finance will reconsider. the attitude he adopted .in replying to .the . debate. Private .enterprise is vigorously eng'aged in afforestation,. . and tho Government should . withdraw from this field, particularly since the situation is so different from what obtained when the planting policy . was first .launched. The very confident assertions of the Minister about the coming .softwood shortage in various .parts, of the world ’is "not borne out by many with first hand knowledge cf the Canadian outlook, for ex-

ample.- In the. interests of the country . lie should keep the Forestry Department much more in; hand.