Forestry encouragement

Press, 28 July 1987, Page 3

Forestry encouragement

PA Wellington National would encourage the forest industry’s social role in supplying jobs and boosting regional economies, said the party’s policy statement on forests, released yesterday. “We will not allow land to go back to scrub and young people to rot on the dole while forests can be economically established for the benefit of the nation,” said the policy, released by National’s leader, Mr Bolger, in Gisborne.

“In particular, we will not allow whole regions to suffer because economic forestry work has stopped. Forestry workers, service industries and the regional towns and cities on which they are based will again prosper under National.” On the second week of

his campaign trail, Mr Bolger began as he had finished last week — attacking Labour policies for the regions, to a provincial audience which seemed receptive to his speech aimed again at the Government’s “duplicity.” He was listened to by about 70 people, many of them superannuitants, with the odd forestry contractor and some office workers.

Mr Bolger seemed to strike a cord with those gathered at a timber company near Gisborne’s centre when he emphasised that “massive regional unemployment” had caused acute social problems.

Labour’s Allan Wallbank holds the seat with a 5.8 per cent majority, but he might have trouble holding it in an area affected by retrench-

ment in forestry, manufacture and the freezing works industry. The party would change the tax system to allow the cost of establishing forests to be deducted over three years. The farm forestry establishment allowance of $7500 would be continued, and the cost of replanting and tending existing forests would be fully tax deductible in the year the spending occurred. “This tax regime will achieve reasonable parity between forestry and other forms of investment and will enable investors to put their money into forestry with confidence,” the policy said.

Forestry grants would not be reinstated and tax credits would not be paid out.

National would review the Forestry Corporation’s

role, particularly regarding new forest planting and the corporation’s relationship with the private sector. Once the tax law was changed the corporation would play a full part in establishing new forests and replanting existing forests, the policy said.

National would make sure the corporation functioned responsibly, and did not use its dominant position to harm the private sector.

“In particular, we will not permit the corporation to buy or establish processing plants or retail outlets which have an adverse effect on small private enterprise firms,” the policy said. Both farm forestry and the planting of special purpose species of trees would be encouraged, as would the planting of trees for soil conservation.