ROYALTIES ON TIMBER.

Auckland Star, Volume LV, Issue 170, 19 July 1924, Page 5

ROYALTIES ON TIMBER.

POSITION OF LOCAL BODIES.

COMMISSIONER'S REPORT. ANNUAL SUBSIDY RATE. (By Telegraph.—Press Association.) WELLINGTON, Friday. The report of Mr. John Strauchon, commissioner appointed to inquire into the question of timber royalties and the effect upon the revenue of local bodies of the Forests Act, 1921-22, was tabled in the House to-day. The commissioner, after an exhaustive inquiry, finds that he cannot point to any definite loss as the result of timbercutting licenses being granted by tho Forest Service, instead of being dealt with as formerly by the land boards. In the Clutha, Wallace, and Stewart Island areas, fourteen licenses were issued by the Forest Service, covering 12,113,000 feet of timber. The licenses were sold for £8089. Possibly bad this land remained under the jurisdiction of the Lands Department, some of it would have been disposed of 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, 191S, and the Forests Act, 1921-22, rights under sawmill licenses already issued are protected, and the local body revenues will not suffer, except where such licenses are forfeited or surrendered. When the State forest reservation operates in the matter of timber on lands under the mining warden's control (estimated at 5.747,374,000 feet, and valued at £2,873,827), the local bodies would have reasonable grounds to expect to receive half the royalties therefrom as long as the warden's control continued. j Regarding the provision that should | bo made in favour of local bodies out , of forest service revenues, to make up i losses of revenue from royalties, the. commissioner does not consider any grant or fixed charge justified. He finds the existing system imposes a heavy tax on the Dominion's timber revenue, and has brought about an inequitable distribution of the State's moneys. An extension of "halves" to cover State forest lands is not recommended as tending merely to intensify an unsatisfactory position. The original idea of granting "halves' - was to assist to make good the damage to roads by heavy timber traffic, but fixing the amount at half the royalty payable to the Consolidated Fund was inequitable. The damage caused to highways by heavy traffic of any particular industry should be chargeable to that industry through the medium of a heavy traffic tax. Local bodies in areas affected by heavy traffic should confer with the object of recommending any amending legislation needed to provide efficient traffic by-laws. The diversion of timber traffic to tramways and the provision of better roads were imperative and the commissioner cannot see any logical reason why State timber sales should be singled out as a special source of revenue for the upkeep of country roads. The licensee of milling timber areas in Crown forests is . liable to rates on timber and on land lif he pays rent. Therefore, and to even !up the position, the area of unalienated State land, including commercial forests not held under cutting rights, should be one of the factors considered in allocating the annual rate of subsidy provided by the Crown. If do change is to be made in the matter of tin-bar royalties the commissioner suggests that the amount each local authority is likely to receive should be taken into consideration when the annual subsidy is being allotted so as to ensure that counties receiving these revenues are not securing an nnfair advantage over counties where there is no timber revenue