Chip mill subsidy 'small price to pay’

Press, 18 August 1979, Page 6

Chip mill subsidy 'small price to pay’

Inangahua's County Coun-ji cil is preparing to fight the!' Government’s rejection of the proposal for a beech | ( chipping industry in the I] area. The council plans a meet-1 ! ing of all interested parties!l on Tuesday tc protest;' against the decision preventing the McVicar timber h

; group from proceding with its proposal. j The Minister of Forests (Mr V. S. Young) told the I company he could not ap- | prove the project because it would require a subsidy and the Government was not i prepared to subsidise a West ■Coast beech industry. i The Inangahua County 'Council chairman (Mr J. R.

O’Regan) said yesterday that although some subsidy was required to make the project viable he hoped the Government would regard this as a small price to pay for some very necessary regional development, especially as it promised substantial benefit to the Railways. “My assessment is that this proposal will require a small subsidy that is at present being applied to the transport of logs to Nelson,” said Mr O’Regan.

“For the proper management of our beech forests it is imperative that there be a local market for all beech. Over the past 20 years proposals to use beech have all come up against what I would refer to as the ‘ignor- • ance syndrome.’ Every proposal is greeted with the answer that not enough is known about it.”

He said beech forests had been researched and reported ad nausem. “A small fraction of the money so spent would subsidise the establishment of an industry such as McVicars have proposed, and the practical work entailed would provide all the research necessary.” He said he was astonished to learn that more logging trials are considered necessary and that in times of economic stringency more public money is to be squandered on research for more reserve and park proposals in an area where there will always be ample scope for reaction and study without any change in status. He said news released from the Director-General of Forests on the Victoria Forest Park and the Minister’s answers to McVicar’s proposals made no reference to any intention to refer these proposals to the' West Coast United Council. ‘‘lt is becoming abundantly clear,” said Mr O’Regan, “that the only way the Inangahua area and the West Coast can achieve any sound permanent development is to have all suitable Forest Service land released for farm development. “I almost feel it incumbent pn me to offer my sympathy to the many Forest Service men who have worked so hard towards establishing a beech industry in this area and have been frustrated at every turn. ! nwney a vaua Die ror nun-pru-•d®tfve research,” he said.