Logging option 'unprofitable’

Press, 12 April 1988, Page 4

Logging option 'unprofitable’

Sustained-yield logging in South Westland forests would be unprofitable unless native timber prices rose substantially, says a study released yesterday.

The study into the economic viability, of. sus-tained-yield logging in forests south of the Cook River was conducted iby a Victoria University economist, Mr Geoff Bertram and a Conservation j Department officer, ; Mr Freek Deuss. The Government is to decide on the future of the South Westland forests by the end of this year. Three options have been proposed for the area. The first two would exclude logging, (‘but the

i* - I third would, allow; for the extraction of ( 'native timber ; on a sustainedyield basis. 5 | | The study ; team concluded I that (even being optimistic aboutj future timber i price i trends, the logging option wais economically unattractive. The benefits of logging heeded to be compared) with alternative ) commercial possibilities such) as tourist development, I they said. The 1986 spending on. the West Coast by tourists has been estinjiated at $76.5 million.;; The (returns from low-impact (commercial logging in th? South Westland area is! estim : ated by the team at $5 to $8 million. ')) .) I