Timber Cutting Rights.

Progress, Volume XVI, Issue 8, 1 April 1921, Page 184

Timber Cutting Rights.

NO BIDS AT AUCTION. Prom the Dominion of April Ist. At the sitting of the Land Board yesterday afternoon the right to ait and remove timber, estimated to consist of 22,962,200 superficial feet, was offered at public auction, and there was not a single bid for any of the lots. The conditions of sale were the usual ones in connection with the cutting of timber on Crown lands, and the timbers comprised totara, matai, rimu, miro, and kahikatea. There / were five milling areas in all, as follow: Lot 1. —Sections 7,8, 9, 10, 13, 14, Block IV., Hautapu Survey District: Area, 886 acres 2 roods. Estimated quantity in superficial feet: Totara, 2,909,500; matai, 1,971,000; rimu and miro, 225,000; kahikatea, 5,538,400. Upset price, £29,520. Time for removal of timber, six years. Lot 2. —Sections 19, 20, Block IV., Sections 12, 14, 15, 16, 18, Block VIIL, Hautapa Survey District: Area, 465 acres o roods 20 perches. Estimated quantity in superficial feet: Totara, 1,169,400; matai, 619,400; rimu and miro, 71,500;

kahikatea, 3,378,200. Upset price, £14,265. Time for removal or timber, live years. Lot 3.—Section 5, Block XV., Manganui Survey District: Area, 195 acres 3 roods 20 perches. Estimated quantity in superficial feet: Matai, 665,600; rimu, 2,970,900; kahikatea, 1,687,200. Upset price, £7,986. Time for removal of timber, four years. Lot 4. —Section 26, Block 111., Makotuku Survey District: Area, 27 acres 3 roods. Estimated quantity in superficial feet: Matai, 27,800; rimu, 83,300; miro, 55>5°°; kahikatea, 111,000. Upset price, £277. lime for removal of timber, one year. Lot 5. —Section 21, Block IT, Maungakaretu Survey District; Area, 69 acres 3 roods. Estimated quantity in superficial feet: Totara, 217,900; matai, 210,300; rimu, 793,200; kahikatea, 251,100. Upset price, £1,850. .lime for removal of timber, two years. Although there was a representative attendance of millers who were aware of the upset prices, there was not a single bid, and the general opinion of the Board was that the prevailing financial stringency had scared the millers or else they were unable to arrange the finance. It will be noted that the general opinion of the Land Board was that the prevailing financial stringency prevented the sawmillers from bidding for these timber cutting rights, but an analysis of the figures might disclose another reason why sawmillers are unable to purchase timber at suai high royalties in face of the present financial and trade outlook. Taking the total super, feet in all the sections and the total upset prices it would appear that the average royalty asked is slightly over 4s. Bd. per 100 super feet and the average “stand” is 11,000 feet to the acre, which in itself indicates bushes little better than “sparcely timbered country.” Again, the above figures show that the average royalty would work out at £25 13s. 4d. per acre, and it must be remembered that the miller would not be buying the land but only the right to remove the timber in a given time; and the time allowed for the removal in most instances is far too short. Taking Lot 1 as an example, the upset royalty asked is ss. yd. per 100 super (and this is on a log measurement estimate which means a royalty of Bs. 4M. per 100 sawn measurement), and the average “stand” is 12,000 feet to the acre, which works out at a payment of £33 10s. per acre merely for the right to remove the timber within the limited time of six years. From the above figures it would appear that the average upset royalty expected by the Government is to be in the vicinity of ss. per 100 log measurement, or 7s. 6d. per 100 sawn measurement, which will certainly not tend for cheaper timber to tlie public in the future. It does not seem very astonishing therefore that there were no bids offered for the cutting rights in question, especially in view of the general outcry for cheaper timber and the prospect of foreign dumping. To cut Lot 1 in six

years would mean the establishment of a sawmill capable of cutting 1,774,000 per annum, but as under present conditions it would take fully a year to get a mill thoroughly established for cutting, with necessary tramways, cottages for employees, etc., it is only possible to estimate on live years’ actual cutting, which means an annual output of 2,125,000 per annum, or, on a 300 cutting day year, roughly, 7,000 per day. his would mean an outlay of certainly not less than £IO,OOO to 12,000 under present costs and conditions lor machinery, mill building, tramways, bridges, cottages, barracks, etc., etc.; but this cost would be very largely dependent upon situation. However, taking a moderate estimate of £ 10,000 plus the £29,520 asked tor the cutting rights, it would mean that the miller would require to provide for the payment of £39,500 out of his cutting for five years, for unless he had other adjacent bushes to go straight into for continuous cutting it would mean that the life of the mill would then cease and the whole of the plant, buildings, etc., would have to be sold as “scrap.’ With the normal wages, maintenance, etc., cost of production, therefore, it is quite clear that under these circumstances timber could not be produced cheaply; and it is certainly not astonishing that there were no bids for the cutting rights in question.