TIMBER TREES

Press, Volume LXXI, Issue 21404, 21 February 1935, Page 18

TIMBER TREES

PLANTATIONS IN CANTERBURY ANALYSIS OF RETURNS EXPERTS SAT MARGIN OF PROFIT JS SMALL I. Timber on large areas of afforested land throughout Canterbury is now reaching maturity and being felled for milling, and it has been possible for experts and authorities to assess the returns and set off against them the costs of establishment and of maintenance of the plantations during the 30 to 45 years of their life. These calculations are considered to prove that forestry as ;.r; investment for private capital :n New Zealand cannot be anything but a failure under the present conditions—that the margin of profit, :f any, can be only extremely small. On the other hand it is claimed that for local bodies and the Gov-f-iTui.cnt there may be a return in forestrv. as proved by the success of the Seiwyn Plantation Board,, which controls a large area in Canterbury. Leading foresters hold that afforestation is one of the greatest essentials for the welfare of the Canterbury plains, and they are urging' prrperty owners as well as local bodies to plant sufficient for their fuvn needs. They hold that the work of the board is a demonstration of what should be done in perhaps smaller measures by every local body throughout the country.

Work for Local Bodies It. is asserted that insufficient afforestation is being carried out in Canterbury and that it is the duty of local bodies to contribute their greater interest and activity to the cause of forestry in the province; but one fact has been definitely established by recent operations, experts claim—that is not a > ; afe investment for private capital, and only remotely likely under present conditions to provide any return at all. The Selwyn Plantation Board ad--ninisters 16,000 acres between the U'annakanri and the Selwyn rivers, «"f which 9500 acres are afforested. Jt is claimed by its members to be the only body of its kind in the whole of Australia and New Zealand, and during the 24 years of its •"'xistence has demonstrated (in the '•ords of Mr Robert Nairn, one of n= most prominent members) that by careful study of forestry problems and economic administration it is possible to make a great success of a work \vhich is essentially a public service and might weHJ>e paid for. Costs of Establishment

The board has been milling on its property from trees planted by the Selwyn County Council as it was constituted many years ago. Lately a number of private owners and also the Ashburtun County Council have milled plantations. From the returns received it has been possible »o draw up figures revealing the cost and return from forestry, necessarily only approximate. Mr R. G. Robinson, the superintendent of the Selwyn Plantation Board's big reserves, has been able to give a summary from his observations during a period of 35 years spent in continuous study of afforestation in New Zealand.

"I am convinced that there is little chance of any forestry scheme proving a financially sound proposition until rigid economy in plantation establishment, maintenance, and overhead charges is introduced, but tree-planting must be carried out at short intervals by the Government and local bodies," he said. The records of the board's expenditure, Mr Robinson said, were incomplete, but it was possible to estimate roughly the cost of establishing a plantation. It could be calculated that to set up pine plantations the average cost was about £2 an acre, this figure including the preparation of the ground, and the rest of the trees. The age of maturity of trees milled was from 30 to 45 years. Meanwhile during those years the cost of maintenance could be estimated at approximately 5s to 10s an acre each year. These last figures were for properties such as those owned by the board.

With private enterprise the rates end other taxes—an ill-important factor—would increase the maintenance costs considerably. The estimate for maintenance charges was very difficult to arrive at as conditions varied very greatly. The figures given included considerations for fire protection and general maintenance. Milling: Returns The milling returns of the board fn pine plantations about 35 to 40 ye>r? old averaged about 38,000 superficial feet of timber, Mr Robimon stated, although there were many timber stands in Canterbury that might return almost double this amount. A number of the board's maturo plantations must be described as second-class, since in few instances had pines been planted "pure'"--without mixture with other The timber was sold on a royalty basis varying from 2s to 3s 3d for 100 superficial feet, and returns from second grade stands could be estimated at approximately £47 an acre Probably a first-class stand would return at least a third as much again. Prices were influenced very greatly by the market, and the distance of the felled timber from the market. These approximate figures showed that the return from pine plantations of the second grade, and they at r-pscnf formed a large percentage of thf> timber cut. would be about £ 33 an acre: but it had to be realised that this was all the income «=arnfd by the land in 30 to 45 years. Thp money spent had to be invested W that long period with a great nsk of losses for a very small return Fire, disease, and drought might take heavy toll of the plantation;.;, and in the case of private enterprise the consideration of taxes added a great deal to the expenditure, at the same time removing much of the return. Mr Nairn said that the board, with its comparative freedom from taxes, its scientific study of the nature of the different soils on the Canterbury plains, its excellent supervision, and its careful study of general forestry problems, had met with fair success which had made it an interesting and valuable example for foresters. in other parts of New Zealand and Aurt.ralia. It had aroused comment from many quarters, and its work was being taken as a guide for other forestry schemes. . •■'*"' "*■