The Press THURSDAY, FEBRUARY 6, 1969. Towards A Rational Forest Policy

Press, Volume CIX, Issue 31906, 6 February 1969, Page 10

The Press THURSDAY, FEBRUARY 6, 1969. Towards A Rational Forest Policy

The warning by Mr F. W. Holmes, economic planner for Tasman Pulp and Paper, that about 100,000 acres of exotic forest is needed to supply a modern kraft pulp and paper mill of minimum economic size should override parochial considerations in the planning of forest-based industries in New Zealand. So far, only the central plateau of the North Island satisfies this criterion: 800,000 acres of exotic forest supply the mills at Kawerau, Kinleith, and Whakatane, which are still capable of considerable expansion before they consume the annual growth of timber in the region.

Scattered throughout New Zealand are a further 400,000 acres of exotic forests, of which about half are made up of farm woodlots and shelter belts. Canterbury's exotic forests, total 100,000 acres, but they are spread throughout the province, the largest plantation being the Balmoral Forest, of 28,000 acres. .The low rainfall, slow rate of growth, and stony soil in which most of Canterbury’s exotic timber has been planted virtually rule Canterbury out as a potential area for pulp and paper production. Nelson’s prospects are brighter, although its planted area is still lower than Canterbury's. In the Waimea County alone, however. 80,000 acres have been planted in exotic trees, and this area is being increased by about 6000 acres each year. In 10 or 15 years the annual crop of timber in the Nelson province should be sufficient to warrant the establishment of a pulp and paper mill. Even before then there will be enough timber available to encourage a steady expansion of timber production and the establishment of a chipboard mill.

The logical development of the pulp and paper industry in New Zealand requires, first, the full use of the annual growth of timber in the Bay of Plenty-Taupo area. The addition of new mills to the present plant in the area will require the minimum capital outlay for a given increase in export revenue from pulp, newsprint, kraft, and other paper. Even when this objective has been achieved, it could be argued that it would be more economic to extend the North Island’s existing forests than to establish new mills in Nelson or elsewhere. Hundreds of thousands of unproductive acres between Whakatane and East Cape are potential forest land, and the growing interest of Maori landowners in leasing their land for forestry may encourage Tasman and Forest Products to confine their future development to that area.

From the long-term, national viewpoint, however, there is much to be said for spreading the development of the pulp and paper industry to other parts of the country. While large, contiguous areas of forest make for low-cost harvesting and milling, they also expose the industry to great risks through fire or disease. For this reason alone, the establishment of a pulp and paper mill at Nelson, and later the replacement of the antiquated mill at Mataura, would in due course be justified. These projects should, however, be given much lower priority than the expansion of present plant capacity in the North Island to make full use of the existing forests.