PROFITS IN TREES

Waipa Post, Volume 32, Issue 1785, 22 July 1926, Page 6

PROFITS IN TREES

STATE V. PRIVATE ENTERPRISE. NO NEED FOR CONFLICT. * - (Special to the “Waipa Post.”) A great deal has been heard in recent years about Afforestation and the possibility of profits accruing from scientific tree planting operations. The State pioneered Afforestation ■work purely in the national interests of conserving a fast dwindling timber supply. As a sesult of the initiative shown by early Governments in this Dominion, the State to-day possesses a magnificent asset in the man-made forests of the country. The subject of Afforestation was brought strongly into public notice by Government propaganda issued by the State Forestry Service. In lectures, brochures and in a hundred and one other ways the importance of reforesting denuded land was emphasised. Particular attention was directed to the pumice country of the North Island. The Gov. lernment carried out an effective planting plan, the evidence of which it seen to-day in the splendid forests around Waiotapu and Rotorua. Then private enterprise came into the field. Four years ago the firtst commercial afforestation copipany was formed and when investors reaibec! the great possibilities anead in timber investment, shares were rapidly applied for and a great eaterorise was initiate!. At this period the State Forestry Service appreciated the co-ordinate work which private enterprise was successfully doing. Reports of the successful flotation of the first commercial afforestation company encouraged other company promoters to launch new companies. Responsible authorities did not object to such company promotions, for it was realised that the hitherto waste lands of the pumice country were being advantageously used. As the years went by private enterprise in Afforestation work came still more prominently into public notice. In Australia thoif•sands of investors espoused the cause which so manifestly possessed the confidence of the people of New Zealand. Private enterprise with plenty of money at its disposal, carried forward propaganda of national as well as Empire value. The State Forestry Service, on the other hand, as is the case with many Government departments, was rather limited in its work for need of funds. Indeed’, financial restrictions have prevented proper attention being paid to the existing State forests, which it is generally recognised are in need of expert forestry attention. The State Forestry Service, however, has obtained sufficient finance to carry on some planting operations and for the acquisition of new lands for Afforestation work. There has not been lack of evidence recently that some persons in the Government employ, view the progress of private enterprise in other than the most cheerful manner. Suggestions have been made in a section of the press that careful consideration should be given by the Government to the operations of private enterprise in the Afforestation field, and one writer was to outline a proposition for the nationalisation of private afforestation companies, and another individual was optimistic of the success of the Government raising a vast amount of money by the issue of State guaranteed forestry debentures. The former suggestion is obviously futile, but the latter might quite reasonably be taken up with advantage to the State. There is no need for conflict between the State and Private Enterprise which are both helping the Afforestation Cause and conserving our national arboreal heritage for posterity. Afforestation is vitally necessary. Paper production and tlie artificial silk industry depend absolutely upon timbe r and the consumption of wood in recent years has assumed such enormous proportions, that the forests of the world are, being “cut out” to supply industrial needs.

There is no need to quote the statistics of every country in illustrating the position. It is interesting to learn from a reliable source, however, that “on the advent of man ; to New Zealand, it is estimated that original forests of some 97,000 square miles covered practically the entire Dominion. From the North Cape to the Bluff stretched forest-types of trees merging one into another in unbroken continuity.” To-day, vast areas are denuded. It is the common duty of both the State and (Private Enterprise to reafforest such country.

In commenting upon the activities of either State or Private Enterprise, destructive criticism is easy. Afforestation, as a properly organised national work, is really only in its infancy. Tree farming, whether for national conservation or for private profit is a comparatively new factor in the world. New Zealand can well be proud of the work accomplished by both State and private enterprise. The largest commercial afforestation company in the world is planting 44.000 acres of pumice land in the North Island this year, and the capitalised value of the State forests of the Do-

minion have recently been -estimated at not less than £35,000,000 sterling. Within a seventy mile radius of Auckland city there are 138,000 acr-efe of State forest, which are the resuljt of the foresight of Governments who initiated a planting policy forty years ago.

Critics of both State and private enterprise are often pessimistc, and when reason is applied to unfair criticisms it is often discovered that there is no foundation f. r surprising statements which a-ive appeared from time to time. The reputable private afforestation companies err very often in conservatively stating their propositions. However, it is perhaps better to be on the safe side. There are, of course, odd private companies which could quite safely be eliminated; companies which are inclined to he to optimistic. This latter class is abhorred by the well-conducted concerns which realise that -the fallacious companies .can do considerable injury to the general Afforestation Cause by ridiculous misstatements. On the other hand, , the honesty and integrity of the Government is often seriously assailed by misguided enthusiasts who see only evil in private afforestation work and of they had their way would turn our Dominion into an imitation of the Soviet Republic. Without private enterprise and the dynamic forces at its disposal, there would be no properly organised social life. Private enterprise sets every wheel spinning. It brings ships from the ends of the learth, laden with the produce of many countries for consumption by our own people. Our home industries als depends upon private enterprise. The taxes whiich go towards the maintenance of Government are drawn from private enterprise. Government and private enterprise in its many phases is indissolubly linked together. In the rational order of things one cannot exist without the other.

Persons with myopic (vision who assail private enterprise, do so without the most elementary consideration of the known Laws of Economics. In the sane organisation of society, Government is essentially paternal in its attitude to private enterprise. No Government which had, any desire to prolong its existence would attempt to hinder enterprise of value to the whole State. The pioneer afforestation companies possess the confidence of the business community, and distinguished commercial leaders have shown their belief in Afforestation by becoming associated intimately with the oldest established and most reputable companies. So far, no charge of mismanagement has been brought against private companies doing Afforestation work, and those companies which effectively safeguard the money belonging to investors will undoubtedly progress to realms as yet undreamed of. A captious critic who gravely doubted the honesty of private enterprise, recently suggested that the Government should take over the management and trusteeship of all private afforestation companies: a proposition which would- make even the most dauntless Prime Minister suffer qualms when the purchase price of the companies came up for consideration. Of course, we must recognise that all life is speculative and every action of frail humanity is fraught with uncertainty. If the Government was prepared to eliminate private enterprise- from the particular fi-eld of Afforestation activity it is quite possible that some private companies would hail such a decision as a means of gaining additional profits without the necessity of waiting till their forests are matured.

Meanwhile, .it is the duty of every commonsense person to ignore inspired controversies, of which disgruntled nonentities are essentially the authors. Iffie State is performing its mission in the afforestation cause and private enterprise is also consolidating effort for patriotism as well as profit.