Local bodies in Marlborough pioneer forest industry

Press, Volume CXI, Issue 32564, 25 March 1971, Page 15

Local bodies in Marlborough pioneer forest industry

(From Our Own Reporter) BLENHEIM, March 24. When, in March, 1968, the Minister of Forests (Mr Maclntyre) made a discouraging report on Marlborough representations for an acceleration of forestry planting, he unwittingly laid the foundations for a forestry scheme with big potential.

Within 30 years, the Marlborough Forestry Corporation (the outcome of the Minister’s unenthusiastic report) expects to be earning $240,000 a year.

With the help of the forestry revenue, future generations of ratepayers in the province will benefit by an easing in the rating burden and an increase in local development.

r The corporation, comprising representatives from the Marlborough, Kaikoura and Awatere county councils, the Blenheim and Picton borough councils and the Marlborough Catchment and Marlborough Harbour Board, held its inaugural meeting ; recently after a tour of inspection of land already acquired between the Tua- ; marina and Pukaka vaHeys ■ (these are between Blenheim ■ and Picton).

The background to the formation of the corporation shows what can be achieved by co-operation between local bodies. In 1964, shortly after the formation of the Marlborough Regional Planning Authority, its first planning officer (Mr S. E. West) recommended the appointment of a special■ committee to study the: scope for afforestation in Marlborough. investigation

This committee, with the Marlborough Catchment Board’s chief soil conservator (Mr R. S. Macarthur) as the chairman, carried out a detailed investigation, and in 1966 recommended to the authority that a vigorous attempt should be made to establish a forest industry in the province. The recommendation was adopted. But the comprehensive: report on forest development potential in Marlborough, when presented by a deputation to Mr Maclntyre in June. 1967, was not as enthusiastically received as the authority had hoped. In a letter from the Minister on; March 4, 1968, the authority was told, that while it was recognised that Marlborough was suitable for large scale exotic afforestation, “at present Marlborough is of relatively low priority in the national afforestation pro-; gramme.” Two days later, the Picton Borough 'Council suggested that the local authorities themselves should investigate the possibility of launching their own scheme, and in May a committee was set up for this purpose. One of the key men in pushing for the combined scheme was Mr F. J. Gimblett, formerly

of the New Zealand Forest Service. GOVERNMENT APPROVAL All local authorities supported the proposal, which was approved by the Minister on August 1, 1969, after detailed consultation with the Forest Service. A working committee was appointed and the necessary legislation prepared. About this time the Marlborough Catchment Board acquired 1500 acres of high country land and a further 722 acres of land was taken up on behalf of the proposed corporation. Some doubt about the prospects of the proposed scheme led to further discussions with the Minister, and in February, 1970, the catchment board agreed to manage the forest and to transfer its recentlyacquired land at Para to the proposed corporation. Subsequently, a forestry encouragement loan of $115,000 was approved for the board, to be transferred to the corporation on formation. During the winter of last year the first 200 acres of land at Para was planted. In November the bill setting up the corporation was passed. NO TIME LOST

The corporation lost no time in implementing the provisions of the act. The works committee recommended the establishment of 1471 acres of forest in the next four years under loan finance and the acquisition of 6125 acres in the Tuamarina Valley. About 3000 i acres of this had already been purchased and the balance was under negotiation. . J , Finance for the development of the forest (which includes land preparation, planting, reading, and providing tree stocks) is to come from forestry encouragement loans. The corporation estimates that loans totalling

$70,679 will be required for these purposes to the end of 1973, by which time it plans to have 1441 acres of forest established. It is estimated that the administration of the scheme, which includes land acquisition, survey and legal fees will cost a total of $50,378 to the end of 1973, by which time the corporation will have an area of 9290 acres available for planting. The finance is to be met by the corporation and will probably come from the general revenue of the seven contributing local bodies. A feature of the forestry encouragement loans is that the principal and compounded interest do not fall due until after the fourtieth year from the time of the first advance, or when clearfelling commences. However, provision is made for rebates of up to 50 per cent on the capital borrowed and on the accrued interest. The corporation has estimated that at the end of 27 years, loan indebtedness, less rebates, will amount to about $924,000. At an annual cutting rate of 300 acres a

year, it estimates that revenue would be $240,000 a year—beginning from the twenty-seventh year. This, the corporation estimates, represents a yield of 8 per cent on investment. The land already acquired by the corporation, or under option to it, comprises two major blocks on each side of the Blenheim-Picton highway. It has little or no pastoral use and much of it is covered by fem and gorse. It rises from about 100 ft above sea level to 2000 ft above sea level. PLANTING TARGETS The corporation has set itself a target of planting an average 400 acres a year and has, as an initial target, a planting rate of 8000 acres in 21 years. The main planting target is between 10,000 and 15,000 acres in 25 to 30 years. At the inaugural meeting, the corporation appointed the Mayor of Blenheim (Mr S. P. Harling) as the first chairman. Mr A. H. W. Adams, deputy chairman of the catchment board, is deputy. Mr Macarthur was appointed chief executive officer, and Mr P. S. Crisp, secretary-treasurer. Initially, the catchment board is to administer the affairs of the corporation.