THE TAPPING OF TREES

Bay of Plenty Times, Volume LXXIV, Issue 14045, 27 April 1946, Page 2

THE TAPPING OF TREES

PLANTATION AT MATAKANA

Applications Received From Two Firms

Discussion By Harbour

Board

Two applications for the right to tap trees on the board's plantation on Matakana Island were discussed at the monthly meeting of the Tauranga Harbour Board recently. Tuck and Watklns Ltd. applied for tapping rights over an area of 200 acres on which the firm at present held a milling licence and Resoturp Ltd. applied for tapping rights over the balance of approximately 200 acres of the board's plantation. After a lengthy discussion the board decided that a committee comprising the chairman (Mr P. S. Densom), Messrs N. A. Blomquist, C. McNaughton and the secretary (Mr E. V. Wall) go into the question and. after further discussions with the two firms, draft an agreement for consideration by the board. The board's executive committee reported that a meeting was called to meet Messrs M. Tuck and L. Tuck (Tuck and Watklns Ltd), G. H. Buetow and N. Hemphill (Resoturp Ltd) to discuss a draft agreement and representations to the board regarding the tapping of trees on Matakana Island for the extraction of gum. The chairman said that an overall agreement could be considered on the basis of payment on a gallonage royalty basis and the preservation of the existing milling agreements. Mr Tuck said that his firm was prepared to consider dividing the board's proposed royalty charge with .the board so far as their block was concerned.'' Firm's Offer It was pointed out to Mr Tuck, stated the report, that this would in effect be granting Tuck and Watklns Ltd. unrestricted rights of extraction at half the charge to other firms. The board could not sanction such an arrangement.

Mr Buetow said his firm would offer an absolute maximum of id. per gallon for a term of five years with the right cf renewal for a further term of five years with provision for upward revision of the royalty at Resoturp's election on renewal. This offer applied only to the board's own area. The chairman, added the report, then made an offer to Tuck and Watkins Ltd to the effect that the board would deal with them on the basis of a royalty payment of id. a gallon or an equal division of profits or losses that might be made from the extraction and sale of gum to Resoturp Ltd., but Mr Tuck said his firm would not agree to either alternative.

The committee's recommendation, concluded the report, was that it agreement were reached with Tuck and Watkins Ltd. tapping rights over the whole plantation area he granted on the basis stated, namely, Resoturp's offer be accepted and Tuck and Watkins to nominate their choice of alternatives and be granted such revision of time under their milling licences as they might require. A letter was received from Tuck and Watkins Ltd. advising that the company had fully considered the questions discussed with the board's representatives and wished to place its decisions before the board. Firstly, the firm wished to emphasise that Tuck and Watkins Ltd. was definitely not undertaking, nor was it interested in any concern which proposed to bleed trees on Matakana Island.

Secondly, stated the letter, this company was prepared to allow the board the full amount of the royalty which had been suggested by the company concerned, one farthing per gallon of gum, provided however, that the board extend this company's licence to enter and remove trees for a. further 10 years in addition to the time stated in the present agreement. It was thought, concluded the letter, that this would simplify matters between the board and would assure it that the firm was prepared to d.eal fairly with the board as it had in the past.

Should Be Limited

In reply to. an inquiry from the board, the Forestry Department sent a. telegram to the effect that heavy tapping for resin should be limited to trees intended for cutting within one or two years. It was detrimental to the health of young trees. Pacific Forests Ltd. replied to the board's inquiry in connection with the extraction of turpentine gum from pinus trees, stating that it could only advise of its having granted bleeding rights for a short term over a small area to Resoturp Ltd. Further to the board's inquiry, added the letter, it was unable' to supply the board with the information it was seeking. Mr J. Banks reported that from inquiries he had made it did not do the tree any harm by taking away the gum.

The opinion that another lo years would put another £ 250 an acre on the plantation,, and he would not agree to the request of Tuck and Watkins Ltd., was expressed by Mr Blomquist.

The board, stated, the chairman was looking a t the question from the revenue aspect and from the facts that had been worked out, the board would be doing all right by letting the firm tap the trees on Ma.takana Island a nd mill the timber.

Mr Blomquist: You are losing 10 years of the plantation.

The opinion that he would not like to go on .with the .scheme with the present oond.tinnn wan voiced by Mr Banks. He considered that the board

should get more expert opinion, He moved that the board wait until more information was obtained.

Mr C. T.' McFarlane stated that lie did not think the board was justified in starting a scheme like this, The chairman: I did not hear you object at the special executive meeting.

Mr McFarlane: I am making ni!' objection now. The proper place Is at the meeting now.

The chairman pointed out that whatever quantity of gum was obtained, the board received one farthing a gallon. The average, as far a? tapping was concerned, was 350 trees to the acre.

Tuck and Watkins Ltd.. said Mr J. D. Alach, had to cut the timber in the first contract, in five years and they now wanted to extend that to another five years.

Payment of Royalties

The secretary explained that lie had suggested that the fairest thing to both parties would be payment of royalties per gallon. The estimated amount of six gallons per tree per season for a yield of 400 acres -xW be £llO S a year to the board which with the addition of £l2O from dues from Tauranga and Matakana felU* would make a total income to llis board of £1228 a season. There was no risk whatever to the board « far as trees being damaged on t« e 20 0 acres of Tuck and Watki». Ltd. "We have got to be very careful before making any agreement at a stated Mr A. E. Missen. He cou not, he added, see where the hoar was going to gain any great bene • Inestimable damage might be don to the plantation. The board Had jurisdiction over what Tuck Watkins Ltd. would do in »" e S B to tapping. If the agreement we i it was extended to 10 years then 1L much more profitable to Tuck .■ Watkins Ltd., and loss to the boat • The board possessed a valuable asset and an asset which was increas in value as the years went by. The chairman pointed out there was always the danger of ' Tuck and Watkins Ltd. had the » ling rights and if they were t*. fied then it was all right. The tality among the trees was great, he thought that as far as taPP>"6 concerned the board had » oUling Tlie lose and everything to gab l - , flow of gum was good and the i ing qualities of the trees was g J It was being done in Italy and «• . parts of the continent and »° age resulted. n 0(, The board, said Mr Alach. losing anything so far as Tup .- Watkins Ltd. was concerned, board would get about £4OO a J , ( off 200 acres and be consider was worth the risk. Jeff Mr Blomquist expressed the > that if it were going to estaW new industry in the district » e . in favour of it, but there were difficult points. He submitted extension of time was The chairman remarked ffi» did not want to sec anything that would stop an industry In Zonlaufl which -would snvo from America.