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The Pamphlet Collection of Sir Robert Stout: Volume 43

VI. Approximate Estimates: Present Commercial Value of New Zealand State Forests (exclusive of Kauri Forests, for which Special Terms should be made)

VI. Approximate Estimates: Present Commercial Value of New Zealand State Forests (exclusive of Kauri Forests, for which Special Terms should be made).

What may be the present commercial value of one million of acres of New Zealand State Forests (for the forest alone, the land being reserved) ?

It is obvious that no strictly correct estimate can be made at present. Official statistics and information are page 15 wanted. The method of averaging, so often leading to error, cannot even he applied to the present case as regards quantity for each species of wood, there being so many different species often mixed together in the same block of forest. However, an average commercial value may be taken from market prices, and from such calculation, imperfect as it may be, an idea of the financial value of those forests can be formed, and may lead to the official investigation Hereafter Suggested.

Many portions of the State Forests have been explored and worked in all parts of the colony by saw-millers, who, from their practical knowledge, can afford valuable information. Still, it may be remarked that they have no interest to over-estimate the wood they buy from the State.

The saw-millers' state that the average out-turn of indigenous New Zealand forests does not exceed 15,000 superficial feet of timber per acre.

Captain Campbell Walker and Mr. Kirk have estimated the proper out-turn of timber in a portion of the Seaward Bush, Invercargill, at close on 31,000 superficial feet per acre.

The latter estimate, affording information perfectly corrects, but limited to one single locality, cannot be taken as the rule for the general out-turn of the State Forests of the colony. The average between the two estimates might be taken, and it would give an out-turn of 23,000 feet per acre. Still, through fear of exaggeration in the present computations, the lower estimates may be adopted, so in the following calculations the averages out-turn in timber of those forests is to be reckoned as 15,000 superficial feet per acre.

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Now, the average price of timber, for all New Zealand markets, and for all species of wood, cannot be calculated under 13s. for 100 superficial feet.

From inquiries, it is found that 100 superficial feet having to be obtained from the growing timber, represent a value equal to one-half of the selling price of the timber at the market. Thus the value of the growing timber to produce the same quantity should be 6s. 6d. Let the latter estimate be reduced to 4s., and such considered as the actual value of the growing timber, thereby leaving a margin sufficient for the cost of felling, sawing, transportation, and other expenses, as well as affording a nett profit of say 20 per cent.*

Therefore, by quoting the out-turn in timber at 15,000 superficial feet per acre, and the value of the growing timber at 4s. per 100 feet, the value of the forest for the timber alone would be £30 per acre, and £30,000,000 would be the present value for 1,000,000 acres.

* These estimates apply to enterprises undertaken on a large scale, and not to individual labour.