TREE-PLANTING BONDS.

Otago Daily Times, Issue 19967, 8 December 1926, Page 10

TREE-PLANTING BONDS.

ISSUE BY GOVERNMENT. PROTEST BY COMPANIES. CONFERENCE AT WELLINGTON. (Special to Daily Times.) WELLINGTON, December J. Exception to the attitude of the State Forest Service, which was stated to be endeavouring to restrict the operations of tree-planting companies by advocating that trce-olanting bonds should bo issued by the Government, in competition with priv ate enterprise, was taken at a Dominion conference of afforestation companies held in Wellington to-day. The Chairman, Mr W. M'Arthur (Auckland) stated that there was a grave danger that the Slate might unnecessarily interfere with the conduct of the private forestry projects. This was indicated from the recommendations made in the recent annual report of the State Forest Service, and the recommendations enunciated in that report were causing concern to those people who had invested their capital in tree-planting companies. The department recommended “the formation of community ondownment forests by the State T orest Set - ,-ice, and also the sale of individual in ; torests therein to the investing public, while in amplification of this recommendation the Director of Forestry stated; “There is no organisation in Now /calami more competent to render this profitable service to the investor, and backed by the guarantee of the State, the participator in State forest endowments would be absolutely assured of the safety and efficient management of his investments If one can judge by iffe investment of the public in the many and diverse tree-planting company ventures at present ottering shares and other rights in Now Zealand, the re sponse to State offerings should be a gener°Ult was” contended by Mr that the wording of this recommendation should bo carefully noted, particularly the expres “on- “Th/many and diverse tree-planting company ventures at present offering, shaie» and other rights in New Zealand Such language as that at once created m the mind of the reader the impression that « vestments in the private “°“ c panics now operating in New Z^ ala , lu C o private .ml F"» “•“SSuiTbr I m"‘£" added Sir M'litbur, "tho.s two recommend*, nfloated bv the Government, 'list consider what the effect might be on private forestry The State would be issuing forestry rlmvment bonds in competition witn the private industrial forestry, companies, but what is more insidious it would also have the ri°ht to control the management of thi Companies it was competing with. Is Un conceivable that the htate Service could harass private. foieAry com Smiles to such an extent “to make rtimruli- for them to opeiate and cairy on tlieir tree-planting b T suless ®L^ U t d 0 sequently force the investing b c chase State forestry bonds.' touch a policy would result m an unwarranted mteitei enco in private industry. would stifle healthy competition among P “the J U tr companies and would create Director of Forestry, for the time . hein„. the dictator of the tree-planting policies of all private afforestation .companies. Moreover, such interference with!teahhy m-ivate enterprise would be a distinct con t P ra'vlntio e n oT the Government’s avowed policy of ‘more business in the Govctn rnent and less Government in business While no one would dispute the re SP onsibilitv°of the. State to Vr^Jo r future supplies of timber, he said, it could reasonably be argued ■ that direct action by the State became unnecessary when the situation was being met by private enteinrise If the aforementioned slogan of the present Government were sincere curtailment of State enterprise, and the encourageemnt of private enterprise was inferential. The present drift of some Government departments was towards bureaucratic control of industries. Could it be said that these departments were in.nirod by a desire to produce profits which would relieve the taxpayer of his burden? The results usually achieved by State controlled industries could not be shown to be a success financially, nor be taken as an example to private industry of the economical and efficient management It was, therefore, ver- necessary for all sections of the community to take active steps to resist the encroachment of the State in any attempt to dominate the industries of the country by bureaucratic control. The policy of the Government. 01 any other Government department, he declared, should bo to encourage and assist private industry in every reasonable way. It should not be the function of .any State department to comncte unfairly with private enterprise, but rather to show by practical experiment how the value or volume ot all industrial products could be increased. GROWERS’ ASSOCIATION FORMED. At the conference it was decided to form an association to be known as the New Zealand Timber Growers Association. The objects for which the association is established are to protect the interests of companies engaged in afforestation work in New Zealand, the collection and circulation among members of information on matters affecting their interests, the fostering of public interest in forestry, either by the State, public bodies, companies, or individuals, the publication of information and matters of interest which will further this object, the encouragement of industries which will assist in a closer utilisation of all forest products, the promotion of forest education and research, co-operation with other associations for the purpose of advancing these objects, the adoption of rules whereby the transaction of the business of the association may be facilitated, and the restraint of any influence detrimentally affecting forestry. A large number of delegates, representing forestry interests in all parts of New Zealand, was present. The following office-bearers were elected: —i"resident, Mr W. M'Arthur (Auckland) ; vice-presidents—Messrs D. S. Wylie (Auckland) and W. Rout (Nelson); committee—Messrs E. Maxwell (New Plymouth),* E. A. Craig (Auckland), M. Chambers (Havelock North), W. Duncan, IT. A. Horrocks, and H. Smith (all of Auckland). The President stated that the newlyestablished industries were ever open to criticism, often by those whoso qualifica-' tions were but slight. The 'forestry companies had been subjected to much criticism, which, in the main, had been unfair and of a destructive character, and which, unfortunately, had impeded the flow of external capital into the Dominion. Bearing these features in mind, the conference had been inaugurated by the companies of foresters who decided to combine chiefly for the purpose of adopting standard practices in connection with forestry management, nursery work, and forest protection, and to encourage further the investment of capital in our planted forests by the people of New Zealand, the sister ’dominions, and foreign countries. The conveners of the conference believed that forestry companies should have an opportunity of securing the very best technical 1 advice available in connection with the 1 establishment of their forests, more par- : ticularly in respect of such matters as the i obtaining of statistical growth, the study of introduced trees, recommendations for , standard planting and nursery practices, i the most suitable species of trees to grow, ! and the various products which can be i made from wood. He-believed that the i most effective method of carrying out I these objects was for the various com- ■ panics represented at the meeting to form i themselves into an association. Messrs A. Hansen and A. R. Entrican, of the State Forestry Service, attended the conference, and stated that the service always endeavoured to stimulate private tree-planting operations.