TIMBER ROYALTIES COMMISSION (REPORT OF THE).

Appendix to the Journals of the House of Representatives, 1924 Session I, C-03a

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1924. NEW ZEALAND.

TIMBER ROYALTIES COMMISSION (REPORT OF THE).

Presented to both Houses of the General Assembly by Command of His Excellency

COMMISSION. Jellicoe, Governor-General. To all to whom these presents shall come, and to John Strauchon, Esquire, of Wellington : Greeting. In pursuance and exercise of the powers and authorities vested in me by section forty of the Finance Act, 1921-22, and the Commissions of Inquiry Act, 1908, and of all other powers and authorities enabling me in this behalf, I, John Kushworth, Viscount Jellieoe, Governor-General of the Dominion of New Zealand, acting by and with the advice and consent of the Executive Council of the said Dominion, do hereby appoint you, the said John Strauchon, to be a Commission to inquire and report upon the extent to which local authorities may have incurred or may incur loss of revenue from royalties consequent on the passing of the Forests Act, 1921-22, and upon the provision which should consequently be made from the revenues of the State Forest Service or otherwise, and generally to inquire into and report upon such other matters relating thereto as may come under your notice in the course of your inquiries and whicli you consider require to be investigated in connection therewith. And you are hereby authorized to conduct any inquiries under these presents at such times and places as you deem expedient, with power to adjourn from time to time and place to place as you think lit, and to call before you and examine on oath or otherwise such persons as you think capable of affording you information as to the matters aforesaid, and to call for and examine all such books, papers, plans, writings, documents, or records as you deem likely to afford you information on any such matters. And, using all due diligence, you are required to report to me under your hand and seal not later than the twenty-third day of July, one thousand nine hundred and twenty-three, your recommendation on the aforesaid matters. And you are hereby strictly charged and directed that you shall not at any time publish or otherwise disclose save to me in pursuance of these presents or by my direction the contents or purport of any report so made or to be made by you. And it is hereby declared that these presents shall continue in force although the inquiry is not regularly continued from time to time or from place to place. And, lastly, it is hereby further declared that these presents are issued under and subject to the provisions of the Commissions of Inquiry Act, 1908.

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Given under the hand of His Excellency the Right Honourable John Eushworth, Viscount Jellicoe, Admiral of the Fleet, Knight Grand Cross of the Most Honourable Order of the Bath, Member of the Order of Merit, Knight Grand Cross of the Royal Victorian Order, Governor-General and Commander-in-Chief in and over His Majesty's Dominion of New Zealand and its Dependencies, and issued under the Seal of the said Dominion, this thirty-first day of May, in the year of our Lord, one thousand nine hundred and twenty-three. R. Heaton Rhodes, Commissioner of State Forests. Approved in Council. F. D. Thomson, Clerk of the Executive Council. EXTENSION OF TIME OF COMMISSION. Jellicoe, Governor-General. To all to whom these presents shall come, and to John Strauchon, Esquire, of Wellington : Greeting. Whereas by a Warrant dated the thirty-first day of May, one thousand nine hundred and twenty-three, and issued under my hand and the Public Seal of the Dominion, you were appointed a Commission to inquire into and report upon the extent to which local authorities may have incurred or may incur loss of revenue from royalties consequent on the passing of the Forests Act, 1921-22, and upon the provision which should consequently be made from the revenues of the State Forest Service or otherwise, and generally to inquire into and report upon such other matters relating thereto as may come under your notice in the course of your inquiries and which you consider require to be investigated in connection therewith : And whereas you were required by the said Warrant to report under your hand and seal not later than the twenty-third day of July, one thousand nine hundred and twenty-three : And whereas it is expedient that the said period should be extended as hereinafter provided : Now, therefore, I, John Rushworth, Viscount Jellicoe, Governor-General of the Dominion of New Zealand, in exercise of the powers conferred by the Commissions of Inquiry Act, 1908, and of all other powers and authorities enabling me in that behalf, and acting by and with the advice and consent of the Executive Council of the said Dominion, do hereby declare and appoint that the time at or before which you shall present to me your report aforesaid is hereby extended to the twentieth day of August, one thousand nine hundred and twenty-three. And with the like advice and consent, and in further pursuance of the said power and authority, I do hereby confirm the said Commission except as herein varied. Given under the hand of His Excellency the Right Honourable John Rushworth, Viscount Jellicoe, Admiral of the Fleet, Knight Grand Cross of the Most Honourable Order of the Bath, Member of the Order of Merit, Knight Grand Cross of the Royal Victorian Order, Governor-General and Commander-in-Chief in and over His Majesty's Dominion of New Zealand and its Dependencies, and issued under the Seal of the said Dominion, this sixteenth day of July, in the year of our Lord, one thousand nine hundred and twenty-three. R. Heaton Rhodes, Commissioner of State Forests. Approved in Council. F. D. Thomson, Clerk of the Executive Council.

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FURTHER EXTENSION OF TIME OF COMMISSION. Jellicoe, Governor-General. To all to whom these presents shall come, and to John Strauchon, Esquire, of Wellington : Greeting. WHEREAS by a Warrant, dated the thirty-first day of May, one thousand nine hundred and twenty-three, and issued under my hand and the Public Seal of the Dominion, you were appointed a Commission to inquire into and report upon the extent to which local authorities may have incurred or may incur loss of revenue from royalties consequent on the passing of the Forests Act, 1921-22, and upon the provision which should consequently be made from the revenues of the State Forest Service or otherwise, and generally to inquire into and report upon such other matters relating thereto as may come under your notice in the course of your inquiries and which you consider require to be investigated in connection therewith : And whereas you were required by the said Warrant to report under your hand and seal not later than the twenty-third day of July, one thousand nine hundred and twenty-three : And whereas by a Warrant, dated the sixteenth day of July, one thousand nine hundred and twenty-three, the time within, which you were required to report was extended, to the twentieth day of August, one thousand nine hundred and twenty-three : And whereas it is expedient that the said period should be further extended as hereinafter provided : Now, therefore, I, John Rushworth, Viscount Jellicoe, Govern or-General of the Dominion of New Zealand, in exercise of the powers conferred by the Commissions of Inquiry Act, 1908, and of all other powers and authorities enabling me in that behalf, and acting by and with the advice and consent of the Executive Council of the said Dominion, do hereby declare and appoint that the time at or before which you shall present to me your report aforesaid is hereby extended to the thirty-first day of August, one thousand nine hundred and twenty-three. And with the like advice and consent, and in further pursuance of the said power and authority, I do hereby confirm the said Commission except as herein varied. Given under the hand of His Excellency the Right Honourable John Rushworth, Viscount Jellicoe, Admiral of the Fleet, Knight Grand Cross of the Most Honourable Order of the Bath, Member of the Order of Merit, Knight Grand Cross of the Royal Victorian Order, Governor-General and Commander-in-Chief in and over His Majesty's Dominion of New Zealand and its Dependencies, and issued under the Seal of the said Dominion, this twentieth day of August, in the year of our Lord, one thousand nine hundred and twenty-three. R. Heaton Rhodes, Commissioner of State Forests. Approved in Council. F. D. Thomson, Clerk of the Executive Council.

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REPOET. To His Excellency the Right Honourable John Rushworth, Viscount Jellicoe, Admiral of the Fleet, Knight Grand Cross of the Most Honourable Order of the Bath, Member of the Order of Merit, Knight Grand Cross of the Royal Victorian Order, Governor-General and Commander-in-Chief in and over His Majesty's Dominion of New Zealand and its dependencies. May it please Your Excellency,— Whereas by Warrant under the hand of Your Excellency, dated the 31st day of May, 1923, I. was directed to inquire and report upon, the extent to which local authorities may have incurred or may incur loss of revenue from royalties consequent on the passing of the Forests Act, 1921-22, and upon the provision which should consequently be made from the revenues of the State Forest Service or otherwise, and generally to inquire into and report upon such other matters relating thereto as came under my notice in the course of the inquiry and which I considered required to be investigated in connection therewith : And whereas I was directed by the said Warrant to report to Your Excellency my recommendations in the aforesaid matters on or before the 23rd day of July, 1923 : And whereas by further Warrants, dated the 16th day of July, 1923, and the 20th day of August, 1923, the period within which I was required to report was extended to the 31st day of August, 1923 : And whereas I have made due inquiry as directed : Now, therefore, I have the honour to report to Your Excellency as follows :— Itinerary and Hearing of Evidence. I took up my duties on the Ist day of June, 1923, and some little time was occupied in perusing the relevant Acts and regulations and gathering the necessary preliminary data. For the purposes of the itinerary plans were prepared by the State Forest Service showing the location of the lands affected, and on the 13th day of June I left for Invercargill to commence the hearing of evidence. To afford the various local bodies every facility for placing their views before me sittings were held in the following centres : South Island —lnvercargill, Balclutha, Dunedin, Christchurch, Hokitika, Greymouth, Reefton, Westport, Murchison, Nelson, and Blenheim. North Island —Auckland, Thames, Rotorua, Taumarunui, Marton, and Wellington. The evidence produced at the sittings, duly corrected and initialled by the persons who gave it, together with any written statements forwarded, is attached hereto. (Note. — The evidence has not been printed.) In all, written or verbal evidence was given on behalf of thirty local bodies, and, in addition, to verbal evidence, memoranda or statistics were received from the following Government Departments : State Forest Service, Lands Department, Public Works Department, Mines Department, Valuation Department, and Department of Industries and Commerce. Review op Recent Forest Legislation. In considering the questions set forth in the Warrant it is necessary to refer to section 34 of the War Legislation and Statute Law Amendment Act, 1918, which contained the first statutory provisions for the proclamation of provisional State forests. At the date of the passing of this Act the State Forests Act, 1908, was then on the statute-book which contained the power to set apart forest lands of the Crown as and for State forests. The 1918 legislation referred to herein was, however, the starting-point of the new forest policy, followed shortly afterwards by the creation of a separate Department to control State forest lands. The Forests Act, 1921-22, which came into force on the Ist day of April, 1922, was a consolidation and revision of the forest laws of the Dominion, and included within its provisions are now the powers to constitute both provisional State forests and permanent State forests. The essential point of difference between a permanent State forest and a provisional State forest is that, in the case of the latter, areas required for settlement

Places at which sittings of Commission were hold.

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purposes may be withdrawn by Proclamation on the recommendation of the Minister of Lands, whilst in the case of the former the reservation cannot be uplifted save pursuant to a resolution in that behalf to be passed by both Houses of Parliament. The bulk of the provisional State forests were set apart under the Act of 1918. These lands are now subject to the Forests Act, 1921-22, in addition to State forests and forest reserves set apart under the earlier enactments. For the purposes of this inquiry it is necessary to include the lands proclaimed under section 34 of the War Legislation and Statute Law Amendment Act, 1918, as well as the areas proclaimed under the Forests Act, 1921-22. The table appended and numbered. (1) shows the whole of the State forest. lands classified in two divisions, viz. : (a) Lands proclaimed under the Acts of : 1918 and 1921-22 (area, 5,432,211 acres), and (b) lands set apart under the earlier enactments (area, 1,732,562 acres) ; total area, 7,164,773 acres. The attached maps indicate the approximate position of these lands. Review of Legislation governing Payment of Timber and Flax Royalties to Local Bodies. It is now necessary for me to turn to the legislative provisions under which payments are made to local authorities of a portion of the royalties received by the Crown from timber and flax. The statute governing the payment of what are commonly known as " halves " will be found in section 319 of the Land Act, 1908, which provides that— " One-half of the revenue received by the Receiver of Land Revenue in respect of royalty under any license for cutting timber or flax, and payable into the Consolidated Fund, shall be payable to the local authority within whose district the timber or flax is obtained and the revenue was derived, and shall be applied by such local authority exclusively in constructing, repairing, and maintaining roads : " Provided that any revenue received under the provisions of this section, from, any district where no local authority exists shall be placed in a separate account, and shall be applied for the purposes aforesaid under the direction of the Minister or of such person as he may appoint." The rights under section 319 were held to apply to national-endowment lands by section 262 of the Land Act, 1908, now superseded by section 17 of the Land Laws Amendment Act, 1912. In the case of lands included within the special districts proclaimed or set apart under the Hauraki Plains Act, 1908, the Rangitaiki Land Drainage Act, 1910, and the Swamp Drainage Act, 1915, " halves " are not payable to local bodies, but are dealt with in the manner prescribed by those Acts under which special accounts are constituted. Reference is now made to section 147 of the Mining Act, 1908, which provides for the setting-apart in mining districts of " Warden's Timber Areas " and " Land Board's Timber Areas." Section 148 of that Act which deals with the application of rents, fees and royalties from those areas is as follows : —- --" All rents, royalties, and fees received in respect of timber-cutting rights shall be deemed to be goldfields revenue in the case of rights granted within the Warden's timber areas, and territorial revenue in the case of rights granted within the Land Board's timber areas : " Provided nevertheless as follows :— " (a.) In the case of-timber-cutting rights granted in respect of land which, pursuant to the contract between her late Majesty and the New Zealand Midland Railway Company (Limited), was set apart as reserves for mining purposes, the rents, royalties, and fees shall be deemed to be goldfields revenue, notwithstanding that the land may be within the Land Board's timber areas. " (b.) In every case where, under any provision of this Act or any other Act, any Harbour Board or person is entitled to the rents, royalties, and fees received for mining privileges in respect of any land, such Board or person shall also be entitled to the, rents, royalties, and fees received for timber-cutting rights granted in respect of such land ; and the same shall, in the prescribed manner, be paid over to such Board or person accordingly, and shall not be deemed to be territorial revenue."

Area of State forest lands.

Payment of " halves."

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Goldfields revenue is payable to local bodies under section 409 of the Mining Act, 1908, and subsections (1) and (2) of this section are as follows :— " (1.) All fees, rents, royalties, and other moneys received under this Act or any former Mining Act in respect of Crown lands open for mining (not being moneys received for the sale of land or the leasing of land for agricultural purposes) shall be paid into the Public Account as goldfields revenue. " (2.) All such goldfields revenue shall, subject to any lawful charges connected therewith other than the cost of collection, be paid by the Minister of Finance, in accordance with regulations, to the Council or Board of the county, borough, or town district in which the same accrued." From the foregoing it will be seen that, pursuant to the legislative provisions referred to, local bodies were entitled (subject to special exceptions referred to in paragraph (b) of section 148 of the Mining Act, 1908, and subsection (2) of section 409 of that Act) to the whole of the timber revenue from Warden's timber areas and Midland Railway Mining Reserves and to one-half of the royalties received from Land Board's timber areas and other licenses for the cutting of timber and flax on Crown lands or national-endowment lands and payable to territorial revenue (Consolidated Fund) or National Endowment Account. At this juncture it is necessary to refer to a special point in regard to section 319 of the Land Act, 1908. It will be observed that this section, which was originally enacted in. the Timber and Flax Royalties Act, 1905, uses the word " royalty," and the legal interpretation laid down for departmental guidance is to the effect that where standing timber is sold for a lump sum and not on a royalty basis local bodies are not entitled to " halves." It has been contended in the course of evidence before the Commission that this interpretation is open to doubt, and opposite opinions by legal counsel have been quoted in support of this contention. It is not, however, for me to attempt to decide the issue. That is a matter for the Courts. The interpretation of the law as indicated above has been accepted by the Government, and the Departments have acted in accordance therewith. It is not a matter which has arisen consequent on the passing of the Forests Act, 1921-22, although it may be a factor in estimating actual or prospective loss to local bodies. For the purposes of this inquiry, however, I must accept the present interpretation of the law as laid down by the Law Officers of the Government. Whatever may have been the intention of the Legislature when passing the Timber and Flax Royalties Act, 1905, in regard to the basis to be adopted n computing " halves " of timber and flax royalties from licenses where moneys are payable into the Consolidated Fund, it is quite clear that it was never intended that any portion of the moneys accruing from the disposal of timber in State forests and payable to the State Forests Account was to be paid to local bodies. The power to proclaim Crown lands as State forests was not a new departure brought into existence in 1918. ft dates back to 1885, when the New Zealand State Forests Act of that year was .passed, and under that Act and the State Forests Act, 1908, extensive reservations were made. The rights of local bodies to " halves," which first came into existence in 1905, • have, therefore, always been contingent rights liable to be seriously curtailed whenever the Crown in exercise of its discretionary powers chose to set apart timber-bearing Crown lands as State forests. In confining the rights of local bodies to royalties payable to the Consolidated Fund the possibility of further reservations for State forests must have been recognized, and therefore the reservations which have been made by the State Forest Service, although extensive in nature, are not, in my opinion, opposed to the contingency provided for when the original Act was passed. Loss of Revenue from Royalties so far as Local Bodies are concerned. Turning now to the first question referred to in Your Excellency's Warrant— viz., extent to which local authorities may have incurred or may incur loss of revenue from royalties consequent on the passing of the Forests Act, 1921-22 — it is necessary to take into consideration the status of the 5,432,211 acres referred to in division (a) of Table (1) prior to the issue of the Proclamations which brought the areas within the provisions of the Forests Act and placed them under the

Goldfields revenue.

Interpretation of the word " royalty."

" Halves " not payable from State forest lands.

" Halves " a contingent right.

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administration of the State Forest Service, subject, however, to the statutory reservations protecting existing rights provided for in section 3 of the Forests Act, 1921-22. The lands in question were partly under the administration of the Lands Department in terms of the Land Act, 1908, and partly under the Warden's administration in terms of the Mining Act, 1908, so far as concerns the granting of timber-cutting rights, and in order to determine to what extent this change of status and administration has already affected the revenue of local bodies from royalties, and to gauge the possible future effect, it is necessary to take into consideration the legislative provisions already referred to under which the rights of local bodies to a portion of those royalties have accrued and to see how those rights would possibly have operated had the timber remained under the jurisdiction of the Lands Department or Wardens in terms of the Land Act, 1908, and the Mining Act, 1908, respectively. Table (2) shows the timber-cutting rights granted by the State Forest Service out of the lands set apart under section 34 of the War Legislation and Statute Law Amendment Act, 1918, and the Forests Act, 1921-22, with the amount of timber disposed of and the price realized. The table has been divided under three headings. (a.) Timber which, if dealt with by the Warden under the Mining Act, would have carried the right to " halves " in favour of local bodies. (b.) Timber situated within Midland Railway Mining Reserves which would have carried the right of local bodies to the whole of the royalties under section 148 of the Mining Act, 1908. (c.) Timber which would have been dealt with by the Lands Department. In regard to items (a) and (6) it will be seen from the table that the former covers 23,369,500 superficial feet of timber, disposed of for the sum of £5,916, and the latter covers 18,670,000 superficial feet, disposed of for £9,345. Assuming that the Warden's control under the Mining Act would have continued unaltered, a question to which I shall refer later, then the local bodies have lost the right to one-half the royalty value in respect of (a) and the whole of the royalty value in respect of (b), provided that in the case of the latter the State Forest Proclamation overrides the provisions of section 148 (a) of the Mining Act, dealing with the allocation of moneys received from the disposal of timber on Midland Railway Mining Reserves (a point upon which there appears to be considerable doubt). It is probable that the total royalties based on the rates fixed by the Mining Regulations would represent a lesser sum than the price realized by the State Forest Service, but what royalty rate would have been fixed had the timber been disposed of under the Mining Act it is, of course, not possible for me to say. In regard to item (c), which covers 72,252,131 superficial feet, sold for £106,057, 1 have received from the Under-Secretary for Lands the following statement in regard to the possible mode of disposal had the timber remained under the control of the Lands Department:— " It is impossible to make a definite statement as to which districts would have dealt with the timber on lands set aside as provisional State forests on a royalty basis if Land Boards had disposed of same, but as the general practice of the Department was to sell wherever possible for a'lump sum it is probable that sales on a royalty basis would have been very small and probably confined to the Southland District." In view of these remarks I could not with any degree of certainty point to a loss of any definite sum. The table shows that in the counties of Clutha, Wallace, and Stewart Island fourteen licenses have been issued by the State Forest Service, covering 12,113,025 superficial feet of timber, which has been sold for the total sum of £8,089. It is possible that had this timber remained under the jurisdiction of the Lands Department some of it would have been disposed of on the royalty basis, in which case the local bodies affected would have participated in the periodical payments received as the timber was cut, but to reduce the result to a definite sum for each county is, of course, not possible in view of the surrounding circumstances. Turning now to Table (3), it will be observed that this table shows the lands i set apart under section 34 of the War Legislation and Statute Law Amendment" Act, 1918, and the Forests Act, 1921 22, exclusive of all existing cutting licenses r and reserved areas attached thereto.

Loss of revenue to local bodies from licenses already granted by State Forest Service.

Loss local bodies may incur in the future from royalties.

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The lands shown in Table (2) are therefore excluded, together with an approximate area of 67,000 acres covered by sawmill licenses and reservations in existence when the State forest Proclamations were issued. The rights under these sawmill licenses and reservations are protected by sections 3 and 35 of the Forests Act, 1921-22, so that the revenues of local bodies will not suffer in this respect except in cases where sawmilling licenses are forfeited or surrendered, in which case the State forest reservation fully operates, and any future moneys received from timbercutting will become State forest revenue. Table (3), it will be observed, has been framed to show the timber formerly under the jurisdiction of the Warden separate from the timber formerly under the control of the Lands Department, and to furnish any fair estimation of the prospective loss which can justly be attributed to the new forestry legislation is a matter of extreme difficulty. In the first place, I think it is safe to assume that had the new forestry legislation never been passed, further reservations for State forests would have been made by the Lands Department under the State Forests Act, 1908, in the ordinary course of events. The system adopted by the Government of selling timber for a lump sum in lieu of on a royalty basis must also be taken into consideration in view of the decision that " halves " are not payable in the case of the former. The remarks embodied in the preceding paragraph apply more particularly to the timber which was formerly under the control of the Lands Department, but it cannot be overlooked that a similar contingency may have arisen at any time so far as the balance of the lands are concerned, even if the Forests Act had not been passed, in view of the fact that strong recommendations had been made by previous Commissions that the Warden's control should be abolished and the administration of timber-cutting for commercial purposes placed under the jurisdiction of the Lands Department. So far as concerns the land included in column (3), which it is estimated contains 6,184,303,786 superficial feet of timber, valued at £5,825,792 calculated at current rates, as this timber was formerly under the control of the Lands Department, and having regard to the practice adopted by that Department in selling timber, I cannot place any prospective loss other than perhaps from small quantities of scattered timber which it might be found more convenient to deal with on a royalty basis. In regard to the balance of the lands, the local bodies would have had reasonable grounds to look forward to receiving (subject to any deductions provided for in section 148 (b) of the Mining Act, 1908) one-half of the royalties derived from time to time from the disposal of the timber included in column (1) —viz., 5,747,374,000 superficial feet approximately, valued at £2,873,827, so long as the Warden's control and the mining laws and regulations governing the disposal of timber remained unaltered. As to the lands included in column (2), containing 861,151,000 superficial feet of timber, valued at £430,576, these are situated within Midland Railway mining reserves, and are subject to the special statutory provisions embodied in section 148 (a) of the Mining Act, 1908, which provides that the rents, royalties, and fees from timber-cutting rights shall be deemed to be goldfields revenue. Local bodies were, therefore, entitled to look forward to receiving the whole of the royalties subject to any deductions provided for in section 409 (2) of the Mining Act, 1908. In regard to the question of royalties from timber-cutting rights granted in State forests by the Warden for strictly mining purposes pursuant to section 35 of i. the Forests Act, 1921-22, it would appear from the wording of section 37 (c) of that Act that any moneys received under this head will be State forest revenues. Since the Act was passed, however, I find that only one right has been granted by the Warden within provisional State forests, the revenue received being £18. I do not forecast any appreciable loss of revenue to local bodies from this source. Turning now to the regulations made pursuant to section 34 of the War Legislation and Statute Law Amendment Act, 1918, I find that these deal with the imposing of conditions on the sale of standing timber and on the grant of licenses to cut standing timber other than for mining purposes under the Mining Act, 1908, t, or for coal-mining purposes under the Coal-mines Act, 1908.

Prospective loss from timber formerly under administration of Lands Department.

Prospective loss from timber formerly under administration of Warden.

Royalties from timber-cutting for strictly mining purposes.

Effect of Regulations made under section 34, War Legislation and Statute Law Amendment Act, 1918.

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These regulations do not apply to the crown or to the exercise by officers of the Crown of statutory rights of selling or granting licenses to cut timber on Crown lands. Although section 34 also provides power for the issue of regulations limiting the export of timber from New Zealand, I find that this section has not been specifically used in this respect. The regulations governing the export of timber from New Zealand are administered by the Department of Industries and Commerce, and were made under the Customs Act and other statutes. In my opinion, therefore, the regulations made under section 34 of the War Legislation and Statute Law Amendment Act, 1918, do not affect the position so far as concerns the scope of my inquiries. Provision which should be made in Favour of Local Authorities out of Revenues from State Forests or otherwise. With reference to the question as to the provision which should be made in favour of local authorities out of the revenues of the State Forest Service or otherwise to make up any loss of revenue from royalties consequent on the passing of the Forests Act, I have carefully considered this aspect of the matter, and, having due regard to the nature of the legislation governing payment of royalties, I cannot point to any case of actual loss up to the present which, in my opinion would justify the making of special grants to any local body or any group of local bodies out of the State forest revenues or otherwise. As to the provision which should be made to meet the probable reduction of revenue from royalties in the future, I am firmly of the opinion that the case is not one for the grant of any fixed, rate or charge in respect of moneys received from the sale of State forest timber. The table appended and numbered (4) shows for each county the amount which the Lands Department has paid out of timber and flax royalties since the passing of the Timber and Flax Royalties Act, 1905, the total sum being £164,829, including adjustments. The bulk of this revenue is from timber. In addition to this, timber rents and royalties have also figured in the amounts paid to local bodies through the medium of goldfields revenue, as will be seen from Table (5), which shows that since 1913 a sum of £32,781 has accrued to this account from State timber. Consideration of these figures leads me to the conclusion that the existing system has imposed a heavy tax on the Dominion's timber revenue, and has brought about a very inequitable distribution of State moneys in this respect, a position which is most unsatisfactory from the point of view of the'local authorities as well as the State. I could not recommend that the " halves " system should now be extended to cover State forest lands, as such a step would merely intensify the present position of affairs, and, in addition, would place a crippling and unjust burden on the funds required for State-forest development. In fact, in my opinion the time has arrived for a review of the whole position. Under section 319 of the Land Act, 1908, " halves " paid to local bodies must be expended in the construction and maintenance of roads, but in the case of timbei royalties paid through the medium of goldfields revenue they are available for general purposes of the local authority. The question is, however, mainly a roading problem, particularly in. the larger counties containing undeveloped land. The original idea of granting " halves " when the Timber and Flax Royalties Act was passed in 1905, was, no doubt, primarily to assist in making good the damage to public roads occasioned by the transport of timber and flax, but the fixing of an arbitrary sum of one-half of the royalty payable to the Consolidated Fund was not in any case an equitable basis to adopt. From the point of view of the local authority, so far as concerns damage to public highways, it makes no difference whether the timber comes from the State forest lands or ordinary Crown lands, or whether the timber is being paid for on a royalty basis or by way of block sale. It is all liable to cause damage if carted over county roads. Thus in the past one county may have been drawing large sums of money merely because the timber was situated on ordinary Crown lands and was being cut on a royalty basis, whilst other counties, where the timber happened to be covered by State forest reservation or was sold for a lump sum, received not a penny from the timber revenues.

Fixed charge on State forest timber not recommended.

Amounts paid by Lands and Mines Departments to local bodies by way of timber royalties.

!J Present system - unsatisfactory. 1 1 t

" Question mainly a roading problem.

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Furthermore, timber which yields revenue to the local bodies may not come over the roads at all, but may be brought to the centre of distribution by tram-line or water carriage, whilst in other districts timber yielding no revenue to local bodies, on account of the circumstances mentioned above, may be transported over county roads. The whole system, therefore, is based on a wrong foundation. If any particular industry is causing extraordinary damage to public highways, the burden of making good that damage should be a charge on the industry and not a charge on public revenues, and in providing State aid for the repair of roads each case requires careful consideration on its merits after ascertaining to what extent private interests should be called upon to contribute. Section 139 of the Public Works Act authorizes the making of by-laws regulating heavy traffic on roads, and for the fixing of charges. From the evidence tendered ha regard to this matter it would appear that local bodies in many cases are not availing themselves of these powers to the fullest extent. Instances have been cited where roads hitherto in good repair have been cut to pieces by heavy traffic, particularly in connection with timber, while those responsible have escaped the costs, leaving the burden to be borne by the local ratepayers. There is a tendency on the part of some local bodies to regard the revenue from State timbersales as the source from which funds should come to make good this damage, but in my opinion the expense should be borne by the industry as part of the cost of production. The control of public roads is vested in the local authorities, a trust which should be jealously guarded in the public interests, and the utmost vigilance is necessary to prevent operators and transport contractors from escaping the costs of repairing damage brought about by their operations. Frequent reference has been made to the difficulties arising in connection with the application of heavy traffic by-laws, and I would therefore suggest that if the powers under the Act are considered to be defective or insufficient, then the local bodies should confer and submit proposals to the Government for amending legislation. The advent of the motor-vehicle is proving a serious problem so far as concerns road maintenance, and if this mode of transport in respect of timber is to be brought into serious competition with transport by tram-line, then the sooner the whole question is reviewed the better. It may not be out of place to mention that the diversion of timber traffic from the road to the tram-line should, in my opinion, be encouraged, and to bring the tram-line to its fullest utility value the question of introducing measures to create important lines " common carriers " for goods wherever possible is a subject which is deserving of serious consideration. Valuable suggestions in regard to this question will be found in the evidence submitted by the State Forest Service and the Public Works Department, and I would suggest that the matter be taken up by these Departments as early as possible. The question of better roads in country districts is a matter of vital importance as having a direct effect on the paramount industry of New Zealand—viz., farming —and the efforts of local bodies to provide better ways for internal communication are deserving of every encouragement and assistance which lies within the power of the General Government. At the same time, however, I cannot see any logical reason why State timber-sales should be singled out as a special source of revenue for the upkeep of county roads. My recommendations in regard to this phase of the matter are that the present system of handing over a portion of the timber revenues to local bodies should be wholly abolished by legislation, and that for the future State aid for roads and other works should be by way of direct grant out of the Consolidated Fund or Public Works Fund, as the case may require. It has been argued that State forest lands are in the main non-revenue producing so far as local rates are concerned, and in this respect are in a better position than private forests, where rates are payable on both the land and timber values. This argument applies to all unalienated Crown property. When millingtimber on Crown forests is sold the licensee is liable for rates on the timber, and if he pays a rental for the land he is liable for rates on the value of the land also. To even up the position, however, the area of unalienated State land, including

Heavy traffic should bo taxed.

Heavy-traffic by-laws.

Tram-lines should be encouraged. Common carrior.

Why tax timber sales for upkeep of roads ?

Abolition of present system, and substitute proposed.

Local rates on timber.

Suggested alteration to basis of annual rato subsidy.

11

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commercial forests not held under cutting rights, should be one of the factors to be taken into consideration in allocating the annual rate subsidy provided by the Crown. Reserves made for purely local advantage should, of course, be excluded. If it is decided that no change will be made in regard to the payment of timber royalties as provided for in the existing legislation, then I would suggest that the amount each local authority is likely to receive under this head should be taken into consideration when the annual rate subsidy is being allotted so as to ensure that counties receiving these revenues are not securing an unfair advantage over counties where there is no timber revenue. Other Questions which have arisen in the Course of the Inquiry. In regard to other questions which have arisen relating to the matters specially mentioned in Your Excellency's Warrant, I beg to refer to a somewhat extraordinary position of affa rs which has been brought about by the passing of section 35 of the Forests Act, 1921-22. This section takes away the powers of the Warden to grant timber-cutting licenses for other than mining purposes outside of reservation areas attached to current grants. A large portion of the West Coast was formerly under the Warden's jurisdiction so far as timber-cutting rights were concerned, in terms of section 147 to 152 of the Mining Act, 1908, and Regulation 117 made thereunder. Clause (3) of the regulation mentioned, which follows clause (c) of Section 149 of the Mining Act, prohibits the Land Board from granting timber-cutting rights within the lands affected, and consequently, now that the Warden's powers have ceased, it would appear that at the present time no one is authorized to issue timber-cutting rights for other than mining purposes outside of State forest reservations. The Mining Amendment Act, 1922, has not apparently overcome this difficulty. What effect this may have on future revenues so far as local bodies are concerned if the existing legislation in regard to the payment of " halves," &c, is to remain, depends upon the question as to whether the power of disposal in regard to the timber is ultimately vested in the Warden under the present mining laws, the Lands Department under the Land Act, 1908, or whether the areas are proclaimed State forests under the Forests Act, 1921-22. The total area of timbered land involved under this head is approximately 365,000 acres, which is estimated to contain about 1,993,327,500 superficial feet of timber. It must, however, be mentioned that these figures are based upon forest reconnaissance for inventory purposes, and should therefore be taken as estimates only. In regard to prospective revenues from flax and oil which have been mentioned in evidence before me, I find that in the case of the former there is very little of commercial value situated on the State forest lands affected. As to the possibilities of oil within State forest lands I have no expert knowledge, but from the information I have been able to gather I must conclude that the matter is altogether too uncertain to form any idea of prospective loss. I do not therefore regard flax and oil as serious factors for the purposes of this inquiry. A further matter referred to by some of the local bodies when tendering evidence ( before the Commission relates to the question as to whether they have received all ) the timber royalties they are entitled to through the medium of " halves " and t goldfields revenue. This subject, and also the question of " halves " from timber- ] sales in past years, which have not been paid by the Lands Department owing to ■■ the legal interpretation of the word " royalty " in section 319 of the Land Act, 1908, are, I consider, outside the scope of my inquiries, and consequently the local bodies should submit any representations they may wish to make in this behalf direct to the Government. In any case such matters do not appear to call for investigation by a Commission. In regard to the allocation of revenues, this is entirely governed by statute, and, if there should be any doubt as to whether the Receivers have correctly allocated to the various accounts moneys arising from the disposal of timber, the matter is one for departmental investigation and audit. I return attached hereto the Warrants with which Your Excellency was pleased to entrust me, together with the other enclosures referred to in my report. Given under my hand and seal, at Wellington, this 23rd day of August, 1923. John Strauchon, Commissioner.

Effect of section 35 of Forests Act, 1921-22, on timber formerly under Warden's control.

Royalties from oil and flax.

Question as to whether " halves " and goldfields revenue have been correctly allocated.

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Table (1).—Return showing the Total Area of Land in the Dominion subject to the Forests Act, 1921-22, compiled as at the 30th June, 1923.

APPENDIX.

12

(a.) Areas set apart under Section 34 of the War Legislation and Statute Law Amendment Act. 1918, and the Forests Act, 1921-22. (6.) Areas set apart under Prior Enactments. Totals. County. Grand Total. Commercial Forests. Protection Forests. Cut-over and Open Lands. Total. Commercial: Protection i . n Forests, j Forests. andOpen Lands. Total. Commercial Protection Forests. Forests. Cut-over and Open Lands. I Amuri Ashburton Ashley Awatere Bay of Islands Buller* Clifton .. Clutha .. Collingwood Cook Coromandel Dannevirke Eketahuna Eltham Featherston Fiord Franklin Geraldine Grey Hauraki Plains .. Hawera Hawke's Bay Hobson.. Hokianga Horowhenua Hutt Inangahua Kaikoura Kaitieke Acres. 140 4,958 92,870 58,073 18,665 1,591 Acres. 1,150 434,634 19,856 1,592 138,842 15,514 Acres. 260 64,926 9,500 72,620 3,087 Acres. 140 6,368 592,430 19,856 69,165 230,127 20,192 198,200 Acres. 4,170 2,155 8,020 200 1,562 565 4,258 260 982 885 Acres. 5,600 20,337 15,821 172 743 18,649 9,910 208 2,460 14,667 25,965 74,725 500 Acres. 7,299 9,924 901 148 11,567 63 1,492 1,202 89 86 6,479 ■ Acres. 17,069 32,416 23,841 1,073 943 1,710 30,216 628 15,660 1,410 2,720 15,649 26,054 86 82,089 500 12 815 10,531 8,671 59,001 106.622 42.491 1,264 4,175 83,649 Acres. 4,170 2,155 8,160 5,158 94,432 58,638 22,923 1,851 982 885 88,200 275,736 6,545 33,108 24,489 15,281 Acres. 5,600 20,337 15,821 172 1,893 434,634 38,505 1,592 148,752 208 17,974 14,667 25,965 74,725 50,000 500 34,170 815 350 10,883 7,502 22,579 106,597 41,129 236,405 3,475 58,554 Acres. 7,299 9,924 901 260 65,074 11,567 9,563 74,112 1,202 3,087 89 86 6,479 60,000 12 114,350 4,748 2,924 12,548 1,105 1,362 57,300 700 27,321 Acres. 17,069 32,416 23,981 1,073 7,311 594,140 s 50,072 69,793 245,787 1,410 22,912 15,649 26,054 86 82,089 198,200 500 12 424,256 815 350 15,631 16,971 68,235 107,702 42,491 318,194 4,175 101,156 88,200 50,000 60,000 275,736 34,170 114,350 424,256 12 815 •• 4,268 1,704 350 2.000 1,608 2,002 270 3,100 2,424 5,528 810 350 5,100 8,300 9.234 1,080 316,930 17,507 2,277 31,404 489 5,246 8,883 5,894 20,577 106.327 41,129 775 3,475 51,082 1,648 500 7,020 295 1,362 24,000 10,035 235,630 7,472 57,300 700 27,321 * Excludes an area 8'. ,,978 acres, Westport Harbour Board Endowment erroneously proclaimed.

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Kawliia.. Kiwitea.. Lake Mackenzie Mangonui Maniototo Marlborough Masterton Matamata Mauriceville Murchison Ohinemuri Ohura .. Opotiki.. Oroua .. Otamatea Otorohanga Oxford .. Pahiatua Patea .. Piako .. Pohangina Raglan .. Rangitikei Rodney.. Rotorua Selwyn . . Sounds . . Southland Stratford Stewart Island Taien . . Takaka.. Taranaki T hames. . Taumarunui Taupo .. Tauranga Tawera .. Tuapeka Vincent.. Waiapu. . • • 1,983 60,339 2,500 19,500 1,217 1,930 13,035 2,672 1,137 18,829 114 3,636 4,194 33,234 300 22,210 54,264 30,015 6.120 46,486 146,869 16,897 224 120 2,904 803 126,869 1,500 85,821 8,519 3,651 326,183 17,823 18,871 150,964 3,993 300 5,232 2,124 48,700 3,623 90 741 5,130 1,436 1,213 j 50,502 8,557 22,124 275 586 7,900 950 4,977 803 187,208 4,741 110,451 9,736 3,366 4,864 389,720 29,052 20,008 150,964 44,946 114 575 5,818 5,760 60,794 37,807 i 1,950 2,205 2,475 2,239 10,217 1,400 200 4,886 1,964 2,600 203 4,600 7,800 12,655 51,408 30,049 1,436 1,619 4,696 4,024 6,435 250 1,400 18,000 1.323 43,328 2,534 20,317 5,548 3,678 715 964 7,500 4,256 16,680 600 400 580 5,586 366 260 123 600 2,600 I 918 7,514 17,505 15,130 6,495 78.305 30,049 1,436 1,619 6,696 4,024 6,435 250 2,000 | 22,886 ! 1,903 48,914 2,900 22,281 5,808 123 4,985 i 62,289 2,206 4,975 2,239 29,717 1,217 1,930 14,435 2,672 1,137 200 18,829 5,000 1,964 3.636 4,194 707 33,234 4,990 550 30,460 54,264 30,015 6,120 46,486 146,869 21,531 15.400 17.490 9.982 l,00o 131,469 7,800 14,155 137,229 38,568 1,436 5,270 330,879 21,847 25,306 150,964 250 1,400 3,993 18,000 1.323 43,328 2,834 25,549 7,672 48,700 3,678 3,623 54,030 14,447 10,512 10,317 49,300 58,000 64 12,067 5.685 22,451 11,218 S8,540 21.243 12,900 68,990 715 964 7,500 741 4,256 21,810 1,436 1,213 51,102 8,557 400 22,124 580 5,586 641 586 260 8,023 600 950 1.218 6,560 6,827 3.000 383 47,146 51 48,017 43,044 3,978 3,722 522 23,599 i 1,721 194,722 17,506 19,871 6,495 188,756 39,785 4,802 6,483 396,416 33,076 26,443 150,964 250 2,000 44,946 23,000 1,903 48,914 3,475 28,099 11,568 60,917 4,985 37,807 59,020 16,215 47,532 17,144 106.564 383 135,161 115 66,204 52.171 212.364 36,727 113.940 42.455 23.404 92,589 707 _ _ 8,300 6,070 49,300 580 3,000 9,180 28,280 106,564 4,990 250 8,250 54,030 6,147 4,442 10.317 638 6,560 6,827 383 59,020 7,035 19,252 17,144 383 58,000 9.439 5,685 1.756 6,294 47,146 I 42,795 900 1,492 135,161 58.354 52,171 149,525 24,683 224 i 64 2,628 51 5,222 •- 115 7,850 4,634 15,176 17,490 9.862 20,695 4,924 98,540 21,243 12,900 65,990 : 42,144 2,486 3,722 522 ' 21,997 62.839 12.044 113,716 42,455 23,284 87,987 .. i 3, COO 1,602 120 4,602

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14

Table (1).—Return showing the Total Area of Land in the Dominion subject to the Forests Act, 1921-22, compiled as at the 30th June, 1924— continued.

(a.) Areas set apart under Section 34 of the War Legislation and Statute Law Amendment Act, 1918, and the Forests Act, 1921-22. lb.) Areas sst apart under Prior Enactments. Totals. County. Grand Total. Commercb! Forests. Protective Forests. Cut-over and Open Lands. Total. Commercial Forests. D , ,. Cut-over Protection ,.-. Forests. and Ope., Lands. Total. Commercial Protection Forests. Forests. Cut-over and Open Lands. Wa kato Waikohu Waikouaiti Waimarino Waimate Waimea Waipawa Waipara Wairarapa South Wairoa Waitaki Waitemata Waitomo Wallace Wanganui Westland Whakatane Whangamomona.. Whangarei Whangaroa Woodville Acres. 976 28,701 4,037 16.825 133,593 663,471 7,227 Acres. \ 688 33,271 7,975 169,260 1,500 11,650 Acres. 297 1,143 35,790 Acres. 1,961 33,271 37,819 209,087 1,500 11,650 Acres. 680 908 ! 2,288 355 578 2,329 52,093 1,825 Acres. 2,150 7,318 3,845 35,402 26,600 28,112 5,278 111,500 54 3,479 43,193 344 98 Acres. 1,000 2,972 39.375 | 529 250 ! 1.350 600 175 129 21,382 186 376 Acres. 1.680 5,122 908 48.981 884 4,673 35,402 26.600 29,462 5,878 111,502 229 5,937 116,668 530 2,299 Acres. 1,656 908 30,989 355 4,615 19,154 185,686 665,296 1.193 7,627 Acres. 688 35,421 15,293 173,105 36,902 26,600 28,112 16.928 111,500 54 10,859 145.367 344 318,683. 3,629 6.635 3,430 2,220 6.052 Acres. 1.297 2,972 40,518 529 36,040 1.350 600 175 5,547 33,810 186 304,376 1,000 230 '3,529 312 Acres. 3,641 38.393 908 86,800 884 213,760 36,902 26,600 29,462 17,528 111,502 229 35,560 364,863 530 1,288,355 4,629 6,865 8,152 10,159 6,052 .. 7,380 102,174 5.418 12,428 29,623 248,195 318,585 3,629 304,000 S 1,000 1,286.056 4,629 .. 820 569 569 8,047 1,193 400 6,635 3.430 | .1,400 6,052 j 230 2,960 312. 6,865 7,583 2,112 6,052 Totals .. .. 1 1,922,896 1,922,896 2,557,746 951,569 ! 5,432,211 214,019 1,239,427 279,116 1,732,562 2,136,915 3,797,173 1,230,685 7,164,773 I hereby certify that this table has been compiled from returns furnished by the Conservators of Forests for the respec Inventory, and that these areas contain no flax of commercial value. :tive forest-conservation regions from the Foresi E. Phillips Turner, Secretary of Forestry. 22nd August, 1923.

15

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Table (2). —Return showing Timber-cutting Licenses granted by the State Forest Service out of the Lands set apart under Section 34 of the War Legislation and Statute Law Amendment Act, 1918, and the Forests Act, 1921-22, from which no Portion of the Revenue will accrue to Local Bodies, compiled as at the 30th June, 1923.

(b.) Timber situated within Midland Railway Mining Reserves which would, have carried the Right of Local Bodies to the Whole of the Royalties under Section 148 of the Mining Act, 1908.

County. Number of Total Area. Licenses. Total Amount Average Rate of of Total Price (Jutting per Timber. Annum. a.) Timber which if dealt with by the Wan 'o " Halves : I the Warden under th " Halves " in Favour \e Mining Act would have carried the Right of Local Bodies. [nangahua .. Irey • .. Westland 2 7 Acres. 2 36 7 1,484 6 576 Sup. ft. £ Sup. ft. 89,500 96 ,500,000 14,600,000 3,650 4,420,000 8,680,000 2,170 4,334,000 6 Totals 15 2,096 23,369,500 5,916 23,369,500 5,916

Grey .. .. .. 4 Westland .. .. .. 2 Totals .. .. 6 Acres. 1,506 375 Sup. ft. 15,500,000 3,170,000 £ 7,750 1,595 Sup. ft. 2,700,000 800,000 6 1,881 18,670,000 9,345 9,345 (c.) Timber which would havi Coromandel ... .. 3 Thames .. .. .. 1 Waikato .. .. .. 1 Taumarunui .. .. 1 Rotorua .. .. .. 3 Waimarino .. .. 3 Kaitieke .. .. .. 8 Rangitikei .. .. .. 2 Collingwood .. .. 5 Waimea .. .. .. 1 Marlborough .. .. 3 Clutha .. .. .. 6 Stewart Island .. .. 4 Wallace .. .. .. 4 been dealt Acres. 1,470 660 400 150 2,601. 456 1,394 217 71 191 393 711 926 400 with by the Lands Department. Sup. ft. £ 1,025,251 1,782 621,725 2,190 338,482 510 2,211,078 4,500 ; 24,814,900 35,759 9,040,130 16,103 15,122,884 28,233 2,327,900 4,371 245,756 216 1,030,000 1,064 3,361,000 3,240 7,962,513 5,224 2,414,206 1,371 1,736,306 1,494 Sup. ft. * 400,000 200,000 500,000 12,000,000 2,968,100 3,936,225 626,975 t 1,000,000 5,225,000 1,225,000 1,600,000 Totals .. .. 45 45 10,040 72,252,131 106,057 72,252,131 106,057 Grand totals .. 66 66 14,017 114,291,631 121,318 I * Cutting practicall; r completed 1- t Cutting to commence July, 1924. I hereby certify that this reti of Forests for the respective fores ixn has beei ;-conservati n compiled : ion regions. Erom information supplied by the Conservators E. Phillips Turner, Secretary of Forestry.

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Table (3).— Return showing the Estimated Quantity of Commercial Timber on Forest Lands proclaimed under Section 34 of the War Legislation and Statute Law Amendment Act, 1918, and the Forests Act, 1921-22 (exclusive of Existing Licenses and Reserved Areas attached thereto), compiled as at the 30th June, 1923.

16

(3.) i _ __ Timber formerly under Warden's Control. rden's Control. (2-) Within Midland Mining Reserves. Estimated Value based Area. Aniountof on Present Timber. Hates. Timbe Area. (3.) Timber formerly under Land Boards ( ontrol. ier foi wrmerly under L ( ontrol. Estimated Amount of Timber. Land Boards Value based on Present Rates. Area. Totals. Estimated Amount of Timber. Totals. Protection — — — Forest and ■ Cut-over and Grand Open Lands Total Vo i„ fl . , . not included (Area). nt pIw }n Preceding on Present Co]urmis . Rates. County. (1.) Within Land Boards Timber Areas. Area. Estimated Amount of Timber. Value based on Present Rates. ■ Sup. ft. ! Sup. ft. 16,375,000 ; £ 31,1£S Acres. Sup. ft. £ Acres. £ Acres. 6,368 Acres. ; 6,368 ; 92,270 Sup. ft. 16,375,000 278,610,000 £ 31,128 139,305 82,086 27,998 8,700 132,300 868,459 38,816 10,000 28,250 86,057 3,000 88,933 5,475 29,260 12,170 26,055 19,552 1,250 11,370 32,000 5\000 41,889 614,996 450 33,315 Acres. 499,560 19,856 11,092 211,462 17,131 110,000 148.520 350 5,100 4,032 7,530 1,080 292,930 7,472 2,994 803 126,869 90,951 8.519 1,436 4,864 376.685 26,380 18,871 190,964 26,117 575 5,818 2,124 56,600 4,573 8.880 6,070 Acres. 6,368 591,830 19.856 65,816 230.056 18,722 198.200) 389,780 350 5,100 8,300 9,234 1,080 311,843 17,507 4,977 803 187.158 4,741 110,058 9,736 3,366 4,864 389,720 29,052 20,008 150,964 44,946 575 5,818 5,760 60,794 35,206 9,180 28,280 Bav of Islands Buller Clifton Clutha Collingwood Coromandel Fiord Grey Hawera Hawke's Bay Hobson Hokianga .. Horowhenua Inangahua .. Kaitieke Kawkia Kiwitea Lake Mangonui .. Marlborough . Masterton .. Matamata .. Mauriceville Murchison .. Ohinemuri .. Ohura Opotiki Otorohanga Piako Poh angina .. Raglan Rangitikei .. Rotorua Sounds Southland .. 77,900 147,088 4,680 235,500,000 1,056,547,000 14,000,000 •• 117,750 i .. 528,274 7,000 14,370 94,172 14,233 43,110,000 ! I 680,370,000 I .. - •■ 42,500,000 -• -- •■ •■ 21,555 340,185 21,250 54,724 18,594 1,591 88,200 • • 4,268 1,704 10,035 1,983 60,289 4,741 19,107 1,217 1,930 16-1,172,000 to.995, 000 3.600,000 26-1.600,000 £{.b22 ,000 5,000,000 95,983.116 , 6,000,000 177,867,000 7. SCO, 000 58,500,000 14,604,0-00 17,370,000 82,086 27,998 8,700 132,300 38,816 10,000 86,057 3,000 88,933 5,475 29,260 12,170 26,055 54,724 j 18,594 1,591 88.201 241,260 4.26S 1,704 18,9)3 10,035 1,983 60,289 4,741 19,107 1,217 1,930 164,172,000 55,995,000 3,600,000 264,600,000 j 1,736,917,000 20,922,000 5,000,000 56,500,000 95,983,116 6,000,000 177,867,000 I 7,300,000 j 58,500,000 14,604,000 17,370,000 •• I 13,035 39,105,000 19,552 2,672 1,137 1,000,000 13,644,000 1,250 11,370 13,035 2,672 1,137 39,105,000 1,000,000 13,644,000 ■- - 18,829 64,000,000 32,000 18,829 64,000,000 ■■ 10,000,000 66,499,100 409,997,000 900,000 66,630,000 5,000 41,889 614,996 450 33,315 .. .. 3,636 4,194 30.633 300 22,210 3,636 4,194 30,633 300 22,210 10,0001,000 66,499,100 409,997.000 I 900,000 i 66,630.000 I I .. I I I .. 1

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17

Stewart Island Takaka Thames Tamnarunui Taupo Tauranga .. Waiapu Waikato Waikohu .. Waimarino.. Waimea Waipawa .. Wairoa Waitomo .. Wallace Westland .. Whakatane Whangarei Whangaroa 460 .. 560,000 420 .. .. .. .. .. .. .. 53,280 159,840,000 30,015 90,045,000 5,660 4,000,000 46,336 542,127,000 146,869 2,753,958,000 16,897 170,702,700 576 400,000 28,701 355,505,870 3,846 12,111,000 79,920 I 45,027 8,840 491,691 2,990,937 256,554 "'soo 275,467 6,055 53,280 159,840,0*0 79.920 30,015 90,045,000 , 45.027 6,120 4,560 000 j 9,260 46.336 542,127,000 ' 491,691 146,869 2,753,958,000 12,990,937 16,897 170,702,700 256,554 576 400,000 500 28,701 I 355,505,870 275,467 3,846 : 12,111,000 6,055 52,300 105,580 105.146 135,161 51.574 57,694 5,685 52,021 2,656 149,525 5,792 22,689 4,605 4,602 9Sr: 1,561 33,271 33,271 9,118 , 37,819 205,050 208,896 1,500 1,500 11,650 11,650 12,798 29,623 114,602 246,804 622,585 1,255,020 4,629 4,629 569 569 8,047 .. .. 16,825 113,050,000 132,202 396,606,000) 60,250 198,303 16,825 113,050,000 60,250 132,202 396,606,000 198,303 632,435 4,496,833,000 2,248,417 45,0-00,000 90,000 619,434 4,401,662,000 2,200,831 13*001 95,171,000 47,586 8,047 45,000,000 90,000 ! .. Totals 862,597 5,747,374,000 2,873,827 1.845.989 12,792.828,786 19,130,195 ! 3,500,720 15,346,70) i ! 135,776 861,151,000 430,576 847,616 |6,184,303,786 5,825,792 I hereby certify that this table has been compiled from returns furnished by the Conservators of Forests for the respective forest-conservation regions from the foresl inventory relating to those regions. Special attention is directed to the fact that the quantities of timber are estimates only, based upon forest reconnaissances. E. Phillips Turner, 21st August, 1922. Secretary of Forestry.

C. -U

Table (4). —Statement of "Halves" paid to Local Bodies by Lands and Survey Department up to 31st March, 1923.

18

District. Timber. Flax. Total. .uckland— Hobson County Katikati Road Board j.. Thames County East;Taupo County Hokianga County Whangarei County Whakatane, County Otamatea County Kaukapakapa Road Board Ohinemuri County Bay of Islands County.. Hikurangi Road Board Kirikiriroa Road Board West Taupo County Waipu Road Board Mangonui County Tauranga County Mercer Road Board Rotorua County Coromandel County Huntly Road Board Marua Road Board Whangamarino Road Board Whangaroa Road Board Raglan County Maunu Road Board Maraetai Road Board .. Matakohe Road Board Rodney County Awhitu Road Board .. Manukau County Pollock Road Board Waitemata County Pokeno Road Board .. Waipipi Road Board .. £ s. d. 7,677 0 1 2,995 17 6 10,712 10 2 51 1 6 8 1,165 19 4 32 13 9 2,455 14 7 3 11 3 1,180 10 11 1,365 11 2 4 12 0 7 10 0 3,094 4 7 47 1 3 5,048 14 10 872 12 7 18 5 7 1,442 11 4 1,954 2 8 2 12 6 519 3 3 36 2 0 600 0 8 61 5 6 £ s. d. 44 12 6 40 10 0 103 10 0 43 6 0 75 16 10 114 0 0 331 8 3 8 12 3 4417 7 20 9 3 0 5 0 £ s. d. 7,677 0 1 2,995 17 6 10,757 2 8 91 11 6 20,936 14 8 1,209 5 4 108 10 7 2,569 14 7 3 11 3 1,511 19 2 1,374 3 5 4 12 0 7 10 0 3,094 4 7 47 1 3 5,093 12 5 893 1 10 18 5 7 1,442 16 4 1,954 2 8 20 3 6 519 3 3 53 12 0 600 0 8 78 4 9 3 7 6 0 7 6 1 11 6 8 0 0 4 12 3 II 10 0 2 14 0 14 0 0 1 0 0 61 10 0 17 11 0 17 10 0 16 19 3 3 7 6 0 7 6 1 11 6 8 0 0 4 12 3 11 10 0 2 14 0 14 0 0 1 0 0 61 10 0 Totals .. 62,182 13 8 988 0 8 63,170 14 4 lawke's Bay*— Waikohu County Wairoa County Opotiki County Dannevirke County Waipawa County Cook County 26 11 19 1 2 10 1,667 il 1,014 9 34 18 9 9 0 9 9 9 26 11 19 1 2 10 1,667 1 1,014 9 34 18 9 9 0 9 9 9 Totals .. 2,764 13 9 2,764 13 9 'aranaki*— Waitomo County Stratford County Ohura County Whangamomona County Inglewood County 553 13 2 32 12 2 358 8 0 29 18 10 1 9 9 553 13 2 32 12 2 358 8 0 29 18 10 1 9 9 Totals .. 976 II 11 I 976 1 11

19

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Table (4).—Statement of "Halves" paid to Local Bodies by Lands and Survey Department up to 31st March, 1923. — continued.

J. B. Thompson, Lands and Survey Department, Under-Secretary. 31st July, 1.923. Memorandum. — The payments on account of flax have been included with the timber payments for the districts marked *. Practically the whole of the amounts have, however, been paid on account of timber. In addition to the above, the following amounts have been paid to adjust revenues derived from Midland Railway reserves which had been credited as territorial revenue instead of goldfields revenue : Westland County Council, £1,958 Bs. sd. ; Grey County Council, £2,779 Is. sd. ; Inangahua County Council, £1,900 18s. Bd. ; Buller County Council, £2,797 Bs. lOd. : total, £9,435 17s. 4d.

District. Timber. Flax. Total. Nelson* — Collingwood County Waimea County Murchison County Buller County Inangahua County Dovedale Road Board Riwaka Road Board .. Sounds County Council Upper Moutere Road Board £ s. 8 12 23 19 1 9 5,731 13 4,620 1 167 13 0 9 1 11 3 6 d. 6 9 4 6 2 0 0 3 6 £ s. d. £ s. 8 12 23 19 1 9 5,731 13 4,620 1 J 67 13 0 9 1 11 3 6 d. 6 9 4 6 2 0 0 3 6 * Totals .. 10,558 16 0 10,558 16 0 Marlborough*— Pelorous Road Board .. Kaikoura County 3,574 4 185 0 8 4 3,574 185 4 0 8 4 Totals .. 3,759 5 0 3,759 5 0 Westland*— Grey County Westland County 37,812 14 0 25,301 6 2 37,812 14 25,301 6 0 2 Totals .. 63,114 2 0 63,114 2 0 Canterbury*— Oxford Road Board 342 0 0 * 342 0 0 Otago*— Clutha County Lake County • Tuapeka County Vincent County Waitaki County 1,598 19 5 126 10 6 63 13 5 33 4 10 24 8 0 1,598 19 5 126 10 6 63 13 5 33 4 10 24 8 0 Totals 1,846 16 2 * 1,846 16 2 Southland — Southland County Invercargill Road Board Wallace County Stewart Island County South Invercargill Borough Lake County 3,852 9 4 46 13 0 2,464 10 7 2,212 8 10 3 15 0 192 7 67 16 5 18 2 0 0 4,044 16 6 46 13 0 2,532 6 7 2,218 6 10 3 15 0 15 0 0 15 0 0 Totals .. 8,579 16 9 281 1 2 8,860 17 11 Grand totals 154,124 3 5 1,269 1 10 155,393 5 3

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Table (5).—Timber Rents and Royalties paid to Local Bodies as Goldfields Revenue, Years 1913 to 1923, as compiled from Returns supplied by Receivers of Gold Revenue.

* Nine months. t Six months. Summary. £ s. d. Ohinemuri County Council .. ■• •• .. •- •• 1,470 13 0 Thames County Council -. .. ••-. - ■ ■ ■ 220 5 5 Collingwood County Council .. .. .. .. - • 121 0 0 Inangahua County Council .. .. . - .. • ■ - • 2, 156 13 7 Grey County Council .. .. .. .. ■• ■- 15,287 17 4 Buller County Council .. .. .. .. .. .. 2,236 0 4 Murchison County Council .. .. .. .. ■. ■•10 15 8 Westland County Council .. .. .. .. .. .. 9,225 3 3 Westport Harbour Account .. .. .. .. ■- 2,053 111 Total .. .. .. .. .. ■■ £32,781 10 6 A. H. KIMBELL, 14th August, 1923. Under-Secretary, Mines Department.

Approximate Cost of Paper. — Preparation, not given ; printing (1,250 copies, and maps), £75.

By Authority : W. A. G. Skinner, Government Printer, Wellington.— 1924. Price Is. 6'd.]

20

Counties. Year. Ohinemuri. Thames. Collingwood. I Inangahua. Grey. I Buller. Murchison. Westland. I Westport Harbour. 1913 .. 1914 .. 1915 .. 1916 .. 1917 .. 1918 .. 1919 .. 1920 .. 1921 .. 1922*.. 1923f.. £ s. d. 152 11 1 160 4 3 185 18 0 181 12 0 180 10 6 180 0 0 160 0 0 46 6 0 60 0 0 163 11 2 £ s. d. 22 4 0 40 1 4 42 0 4 91 9 9 £ s. d. 121 0 0 £ s. 715 11 d. 7 £ s. d. 129 6 6 687 8 7 1.079 14 1 1,060 1 7 1,811 18 10 1.356 8 3 901 15 10 2.314 16 0 2,411 6 11 1,942 14 1 1,592 6 8 £ s. d. 508 5 5 331 3 6 240 19 5 113 4 2 233 11 7 107 11 7 74 17 3 211 13 0 255 10 4 154 10 1 4 14 0 i £ s. d. 2 10 0 2 10 0 5 15 8 £ 8. d. 105 14 2 89 13 10 293 16 6 413 6 3 591 9 6 1,037 17 8 939 2 5 1,803 7 6 1,888 6 2 1,513 0 10 549 8 5 £ s. d. 277 7 8 258 18 5 375 11 10 52 0 8 199 16 1 181 0 1 143 18 9 145 15 2 174 7 1 171 14 6 72 11 8 12 0 0 10 0 0 2 10 0 277 4 348 15 290 5 524 17 6 6 0 0 1,470 13 0 220 5 5 121 0 0 2,156 13 7 15,287 17 4 2,236 0 4 10 15 8 9,225 3 3 2,053 1 11 ;

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NEW ZEALAND TIMBER ROYALTIES COMMISSION, 1923. MAP OF NORTH ISLAND (TE IKA-A-MAUI) NEW ZEALAND SHOWING STATE FORESTS

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NEW ZEALAND TIMBER ROYALTIES COMMISSION, 1923. MAP OF SOUTH ISLAND (TE WAI-POUNAMU) NEW ZEALAND SHOWING STATE FORESTS