V. Modus operandi. A Lease for Ninety-nine Years: its Conditions and Effects.

In the matter of the New Zealand Forests, the problem to be solved is this:—

How to obtain from a large portion or portions of those forests (the land excluded from disposal) an amount of money equal to the present commercial value of the forest, and to secure at the same time its conservation and improvement.

Should a sale be contemplated, of course a very extensive area of forest would be required to bring in a large amount of purchase-money. Now, the working of such a large area would require many years, and most probably the buyer, having no interest in the conservation of the forest, might treat it indiscriminately, for the prevention of which an expensive supervision would be necessary.

Opposed to such a view, it may be said that the State, having still in hand about 11,000,000 of acres of forest lands, can well afford to sell 1,000,000 of acres to speculators, and that the clearing of such an area could not cause any injury to the country, etc., etc.

To such argument it may be answered that offering such a large area of forest for sale would prove an urgent want of financial resources on the part of the vendor, and page 13 that the buyer, taking advantage of circumstances, would require the absolute sale of the land as well as that of the timber on it, and most likely would not pay more than current prices for it.

Granting the same area of forest on a lease of long duration, and subject to by-laws and supervision of the State, would be considered good management of the public property, and would afford greater financial advantages than in the case of a sale, as hereafter explained.

Now, let us suppose that a large area of forest—say one million of acres (to be formed of several blocks taken in different parts of the colony, as may be advisable),—would be leased for ninety-nine years to an European Company.

The forest to be divided into one hundred sections. One-fourth (or thereabout) of the growing timber, as selected by the State foresters, to be reserved on sections for systematic treatment.

Plantations to be made on sections immediately after the clearing of the felled timber, at the expense of the lessee, and under the directions of the State foresters (allowance being made for that expense as hereafter indicated).

Of course conditions respecting the working of the forest, the interference and supervision of the State foresters (which interference would be of benefit to both parties), should be embodied in the lease.

It must be observed that in the case of a lease of such duration a double object is in view, viz.:—

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First, that in such a period two fellings (crops) could be obtained from the same section, consequently enhancing the value of the whole transaction.

Secondly, that the lessee should be bound by his own interest to the proper management of the forest on account of the second fellings, which will include not only the old reserved fourth of timber trees but also plantations made by him which have attained sufficient dimensions for market requiremens—less, however, one reserved fourth of these plantations.

The result of the transaction would be that, beside immediate and subsequent financial advantages, the State, at the expiration of the lease, would come into possession of a well-regulated forest yielding a considerable annual revenue.

Another advantage would be, that such a transaction would form a starting-point for developing the Forest Department, which in this country should bring in the largest amount of revenue.