xlii Appendix. 
disposal, consisting only of one Inspector, are very inadequate. 
In Otago, they are leasing forests to saw-mills at so much per annum, 
averaging £1 per aere per annum for three years, and issuing licenses to 
hand-sawyers and splitters at 50s. per annum for a claim of 200ft. square. 
In Westland, again, a fee of £5, for each man employed in working a 
Government forest, is charged ; and I believe in Auckland a fee of £5 was 
charged for working a certain area of forest; but this has now been put a 
stop to. The Southland system recommends itself in every way, and 
appears to give satisfaction to saw-millers and those requiring timber 
generally. The present Government revenue, even at the very low 
royalty of 8d. per 100 from saw-mills, £2 settler's license for cutting fire- 
wood for domestic use, 1s. per cord firewood for sale, and 20s. per 500 
pieces of fencing stuff, amounts to about £1 ,200 a-year. But the saw-mill 
industry is at present very stagnant, and there is doubtless great evasion, 
or non-enforcement of the license regulations, by settlers and splitters, 
owing to want of establishment or arrangement for their systematic working 
and supervision. There are regulations intended to prevent waste and 
restrict felling within certain limits; but these cannot be said to have been 
enforced, nor should I try to do so hurriedly. It is only by degrees, as we 
ean help saw-millers to a better market for their small stuff, induce them 
to work out one block before going to another, and ensure economy in 
hand-sawing or splitting by levying royalty at so much a tree or number of 
trees, that we can hope to prevent waste and regulate felling. But it can be 
done only by degrees and taking the people along with us. Surely something 
in this direction, by which a forest revenue already amounting to upwards 
of £2,000 a-year in Otago and Southland—an amount which would probably 
be doubled the moment systematic supervision was introduced, whilst it 
gives us the means of gradually introducing improved management—is 
better than the laissez aller and general destruction of timber in other dis- 
tricts without any return direct or indirect to the State, or to disposing of 
forest lands, worth £30 per acre for the forest alone, at £2. It may be 
said that people will not buy forest land at enhanced rates, and will not 
pay to take timber from Government forest when they can get it from free- 
hold. I maintain that they will gladly pay enhanced rates for forest land 
if we place it judiciously on the market, and not depreciate it by sacrificing 
the timber on it in order to push settlement, and that Government would 
have no objection to the supply being drawn from freehold lands, and can 
well afford to wait till they are exhausted. I know all the stock arguments 
as to the cost of clearing forest land, the advantages of opening out the 
country, which no one can deny; and the fact that timber is absolutely 
valueless and an encumbrance away from a market. I grant them all ; but, 
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