FROM WASTE TO WEALTH.

Putaruru Press, Volume VII, Issue 297, 18 July 1929, Page 5

FROM WASTE TO WEALTH.

¥ Tree-planting On An Economic Basis.

Comparison Between Forest & Farm.

Figures in Regard to Pulp Industry.

The following letter was sent by IN.Z. Perpetual Forests Ltd. to the Putaruru Chamber of Commerce with reference to the recent controversy in regard to planting trees on farming lands:— The many comments which. have lately been put forward on the subject of commercial afforestation, and the criticism levelled at that industry by local institutions and representative men, have made it necessary that the true position be before the public. If this were not done many misconstructions, resulting in serious loss both to your •district and the country generally, may be perpetuated. In View of the fact that some at least ' of the criticism is obviously levelled at our company we must, in our own interests and in the inter--ests of the public in the Putaruru district, place the true position before them. : ' The public statements made go to:’show that at least some ofdiihe speakers have a very poor knowledge of the subject they set out to discuss land a very poor knowledge of the operations of our company in thiair midst.

General'necessity for the increased production in Hew Zealand and in the British Empire of soft woods has been so often publicly explained that we do not consider it necessary to deal with that aspect of the subject. Similarly, the suitability of the pumice lands and the climate of the area in your district has been so definitely established that we can, we "think, take the same as proved. Any discussion, therefore, is narrowed down to the following question :

Is it in the interests of New Zealand in general, and of Putaruru in particular, to apply restrictions against soft wood growing in the Putaruru-Taupo areaS in favour of -agriculture or dairy farming? We do not wish to enter into a discussion as to whether or not the pumice lands are suitable for dairying purposes. We admit that the soil and the climate are suitable for dairy farming purposes on a scientific basis, provided the country is prepared to pay the price. We claim, however, that for a given area of say T. 50,000 acres applied to soft wood production the resulting value to the •district and to New Zealand would •exceed many times the value to be derived from dairy farming on a similar aria.

'The points to be considered fall under two heads, firstly, the value of the crop, and secondly, the population maintained.

An* to the value of the crop, experts advise that, in view of the rate of growth in the Putaruru-Taupo country, 1 150,000 acres of soft wood will produce on a rotation of 15 years an annual crop of 500,000 cords of wood pulp. This, if converted into newsprint, would produce at least 300,000 tons, or an average of 1000 tons per day for a working year of 300 days. The employees actually engaged in such mills and in the forests in cutting and replanting would be in the vicinity of 8000, and we estimate that the dependents of such employees and the workers engaged in collateral or kindred industries would increase this population 'to' somewhere in the vicinity of 24,000. The effect of such an industry of the nature and magnitude ■outlined above on the district of Putaruru can readily be visualised.

The value of the exportable product in newsprint production on the •above basis would amount to £3.900 000, being £l3 per ton for 300,000 tons: Records show that a market exists for this in the south•era Hemisphere. On the other hand, if a similar -area were settled with dairying and agriculture farmers, and such farmers are assumed to succeed to the highest degree in their business, there would be 1000 farmers with 150 acres each; the population actively engaged in farming would thus be 1000. Allowing for dependents of each active farmer would increase this population to 4000. The workers engaged in kindred industries, dairy factories, etc., would, we suggest, not increase this population above 6000.

( As to the value of the exportable j product derived from dairy farming, jif we assume each farmer is sucI cessful, his production would not exceed £4 per acre per year, which we say is a liberal | estimate and well above the average. We find on this basis that the exportable value of the product would be £600,000 per year. Summarised briefly, the position is that in soft wood cultivation the same amount of country will provide work for four times the population and secure exportable products five times as great in value as a similar amount of country devoted to agriculture.

If those public men who are so ready to level criticism would only pause and compare the two sets of figures, and give the subject of each a little study, we venture to think -hat those who have the interests of their district and of New Zealand at heart would advocate soft wood growing, or would at least nd-w those engaged in that industry to develop it in peace. It is now desirable to make dec - to your chamber and to the n-m-jle of the Putaruru district t!w position of our company, and the steps it is taking along +W ,h;as of development in its particular industry. The foil-- wing figures may be of service and of interest to your chamber. The areas already established amount to 106,000 net planted acres, and this area, with work in hand for the coming winter, will be increased to 120,000 net planted acres. In addition, there is a considerable area devoted to reserves, roads and firebreaks. There are upwards of 50,000 investors in the undertaking, the majority of whom are resident in New Zealand. The capital subscribed and invested in the es- I tablishment of the plantations and their maintenance is approximately £2,750,000, of which the greater part is subscribed abroad and comes into New Zealand gradually and free of interest. It may thus be seen that while many New Zealanders mav criticise such an undertaking and suggest imposing further taxation upon it, thereby tending to damage both the undertaking and the country. Britishers resident abroad are fully alive to the opportunities presented in soft wood growing in New Zealand.

We may mention here, for the information of the Putaruru public, tfyat the wages paid in the Putaruru district by our company since its inception amount to £260,000. Founders of the undertaking-, bein£ alive to the necessity of efficiently guarding- the interests of investors. established a permanent trustee called “ The Australasian Forestry Bondholders’ Trust Ct.. Ltd.” This is simply an incorporated body of trustees. Its members hold no interest in the planting company whatsoever. and it functions independently. The main purposes of the Trust Company are two; firstly, to protect the interests of investors during establishment, and the period of growth of the plantations; and. secondly. to act as intermediary when the time for exploiting and sale of the plantations arrives. To ensure the observance of all proper provisions under the first heading, a reserve has been set up which at present amounts to £315,000 in all, and is rapidly and steadily increasing. In case proper provision is not made by the planting company for maintenance, the Trust Company has full and unrestricted power to apply such portions of the reserve towards maintenance as it thinks fit. This size of this fund, which is all invested in gilt edged securities, and the conditions under which it :s held, ensures beyond doubt that the plantations will be properly guarded and attended during the period of growth.

Under the second heading on the subject of exploitation and marketing, the Trust Comoany directors and the executive of the planting company are and have been actively engaged in preparing for marketing the product of the plantations. Al-

though N.Z. Perpetual Forests, Ltd., was only established in the year 1924 and the first areas planted in 1925, active enquiries are already being pursued abroad on the subject Of the establishment and financing of paper . mills, the management of such industries and the market value for the product, and all subjects affecting the question of exploitation and selling. We may state that enquiries are active in India, the Straits Settlemens, Australia, Great Britain and Canada on these subiecls We therefore suggest that public men in your district could, in the interests of the district, do their utmost towards the support of an undertaking which is obviously of such great benefit to the people they represent. *