TIMBER ROYALTIES

Nelson Evening Mail, Volume LVI, 19 July 1924, Page 5

TIMBER ROYALTIES

COMMISSIONER'S REPORT

(United -Press Association.)

WELLINGTON, This Day

The report of John Strauchon, Commissioner, appointed to inquire into the question of timbpr and timber royalties and their effect upon local bodies’ revenues under the Forests Act 1921-22, was tabled in the House to-day. Tho Commissioner, after exhaustive inquiry, finds that he cannot point to any definite loss as a result of timber cutting licenses being granted by the Forest service instead of being dealt with as formerly by land boards. In Clutha, Wallace, and Stewart Island fourteen licences were issued by the Forest service covering 12,113,000 feet of timber which was sold for £BOB9. Possibly bad this land remained under the jurisdiction of the. Lands Department some 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 the case of lands set apart under the War Legislation Act 1918 and Forests Act 1921-22 rights under sawmill licences already issued are protected and local body revenues will not suffer except where such licenses arc or surrendered. When the State Forest reservation operates in the matter of timber on lands under the mining warden’s control estimated at 5,747,374,000 feet and valued at £2,873.827 local bodies would have had reasonable grounds to expect to receive half the royalties therefrom so long as the warden’s control continued.

Regarding provision that should be made in favour of local bodies out of forest service revenues to make up losses of revenue from royalties the Commissioner does not consider any fwant of a fixed charge justified. He finds the existing system imposes a heavy tax on the dominions’ timber revenue.and has brought, about an ineauitable distribution of State moneys. The extension of ‘halves” to cover the State forest lands is riot recommended, as tending merely to intensify the imsatisfactorv position. The original idea of granting “halves” was to assist to ir.ake good damage to roads by heavy timber traffic,..but fixing the amount at half the royalty payable to the Consolidated Fund-, was inequitable. The damage caused to highways by heavy traffic of any .particular iiidustrv should be chargeable to that, industry through Ihe nj odium of a. heavy traffic tax. Local bodies in areas affected by heavy traffic should confer with the object of re- ■ commending anv amending legislation needed to provide efficient traffic bylaws and the diversion of timber traffic to tramways. The. provision of better roads was imperative anti the Commissioner cannot see any logical reason why State timber sales should bo singled out as a special source of revenue for the upkeep of country roads. The licensee of milling timber in Crown forests is liable to rates on Hie timber and on the land. If no charge is to be made in 'the matter of timber royalties the Commissioner suggested that the amount each local authority is likelv to receive should be taken into consideration when the annual subsidy is being allocated, .'so as to ensure that counties receiving these revenues are not securing an unfair advantage over counties : where there is no timber revenue.