Coast promised assets instead of logging income

WESTPORT - Labour is promising to give a West Coast economic development trust more than $72 million in forestry assets, profits from existing rimu contracts and at least $3 million a year from energy resource levies and royalties.

A Labour government would also pay Coast local authorities about $1.6 million a year in grants in lieu of rates on crown land, says the party's proposed West Coast economic development package.

The package aims to compensate the West Coast for stopping native logging of crown forests.

Labour is promising to set up a local economic development trust that would receive, in perpetuity, the cutting rights and control of exotic forests managed by Timberlands West Coast.

The estate is valued at $64 million, says Labour, with Timberlands' fixed assets valued at $2 million.

Labour would also allocate cutting rights and control of special-purpose species to the trust in perpetuity. The trust would receive income from energy resource levies and royalties and timber lease payments and royalties that totalled $3.6 million last year.

- NZPA