TIMBER ROYALTIES

Evening Star, Issue 18690, 19 July 1924, Page 9

TIMBER ROYALTIES

REPORT OP COMMISSIONER. POSITION OP LOCAL BODIES. [Pee United Phess Association.] WELLINGTON, July 18. The report of Mr John Straohan, _th« Commissioner appointed to inquire into tho question of timber royalties and tho effect upon local bodies’ revenues of the Forests "Act, 1921-22, was tabled in the House to-day. Tho Commissioner, after an exhaustive inquiry, finds that ho cannot point to any definite loss as the result of timber-cut-ting licenses being granted by the_ Forest Service, instead of being dealt with, as formerly, by land boards. In Clutha, Wallace, and Stewart Island fourteen licenses were issued by the Forest Service, covering 12,113,000 ft of tin.her, which was sold fox £8,089. Possibly bad this land remained under the jurisdiction of the Lands some of the timber would have been disposed of on a royalty basis, and local bodies would have benefited. The amount of such benefit could not be determined, however. In tho case of lands set apart under the War Legislation Act, 1918, and tho Forests Act, 1921-22, the rights under sawmill licenses already issued are protected, and local body revenues will not suffer except.where such licenses are forfeited or surrendered when the State Forest reservation operates. In the matter of timber on lands wider mining wardens’ control, estimated az 5,747,374,000 ft, valued at £873,827, local bodies would have had reasonable grounds to expect to receive half the royalties therefrom, so long as wardens' control continued. Regarding tho provision that should be made in favor of local bodies out of Forest Service revenues to make up losses of revenue from royalties, tho Commissioner doos not consider *hat any grant of a fixed charge is justified, Ho finds that tho existing system imposes a heavy tax on the dominion’s timber revenue, and has brought about inequitable distribution of State moneys.. The extension of “ halves ” to cover State forest land ia not recommended, as tending ( merely to intensify an unsatisfactory The original idea of granting 1 halves ’*• was to assist to make good the damage to Toads by heavy timber traffic, but tM fixing of the amount at half the royalty payable to the Consolidated Fund was inequitable. The damage caused to highways by heavy traffic of any particular industry should be chargeable to that industry through the medium of a heavy traffic tax. Local bodies in the areas affected by heavy traffic should confer with the object of recommending any amending legislation needed to provide efficient traffic by-laws. The diversion of timber traffic to tramways, and the provision of better roads were imperative, and the Commissioner cannot see any logical reason why State timber sales should ba singled out as a special source of revenue for the upkeep of country roads. The licensee of nulling timber areas in Crown forests < is liable to rates on timber, and in land, if he pays rout thereof, and to even up the position, the area of unalienated State land, including commercial forests',not held under cutting rights, should ho one of tho factors considered in allocating tho annual rate of subsidy provided by the Crown. If no change is to bo made in the matter of timber royalties, the Commissioner suggests that tho amount each local authority is likely to receive should bo taken into consideration when the annual.subsidy is being allotted, so as to ensure that counties receiving these revenues are not securing an unfair advantage over couftti®! where there is no timber reventM.