"BREAKING THE CIRCLE."

Auckland Star, Volume LII, Issue 25, 29 January 1921, Page 6

"BREAKING THE CIRCLE."

THE SAWMILLERS' EFFORT. ATTEMPTS TO STAY RISING PRICES. The decision of the Federated Sawmillers' Association to pay the 3/ 'bonus recently granted by the Arbitration Court 'wibhout passing the cliarge on to' the public has. aroused a good deal of: interest. The sawimjMers, who have often, ibeen blamed for the Wg advance in the ! cost of 'building, have made a definite effort to .break the •■vicious circle" of : rising wages and prices, and they have set an example that the (Board of Trade is inviting other industries to follow. The nrllers claim that they have never bnen responsible for any large share of the increased cost of 'building, the addi-tiona-1 charge" f° T timber representing something under £50 for a five-roomed j house.

When the Arbitration Court 'first mentioned the suggested 9/ bomrs, which irat to date from November 1, the sawmiller* applied to the Board of Trade for lcaw to add the cost of thus bonus to the price of timber. The board gave its consent, the extra charge to be 1/6 per 100 feet. Then came the discussion of thp bonus before the Court and the reduction of the amount to 3/. The sawmillers were ent'tled to added a hundred feet to the price of timber in order to cover the additional charge for wages. But at the request of the president of the Board -of Trade, who admitted their right to the extra money but asked thorn to forgo it. they consented to leave their prices unchanged. This means that the s-iwmillers are taking the 3/ borrus on their own shouldprs. It is clear, of course, that if wages and prices continue to risp against them they cannot maintain the stand thov have taken up. Btit they ihooe that the example they are setting -will be of avail. They believe that a general in the demand for more money will have the effect of stabilising the situation and benefiting the whole community. "The saw-millers have made an honest attempt to help the public," said a representative of the association to a reporter. "They are forgoing a part of a legitimate pTofit in order that the latest increase in wages may not be followed, as far as they are concerned, by an increase in prices, which wou'.d lead again to a demand for an increase in wages—and so on till something ■break? It should he understood that the sa-w-miHcrs arc not responsible for the very high co-st of building. Their prices are a comparatively email fact-nr in ths cost. Labour charees after the timber leases the mills are the big factor

in making houses expensive. For example, transport that used to cost 2/6 per hundred is now costng moie per hundred, owing largcl-v to excessive charges for handling on the wharves.

"•I have noticed a complaint that '}utimr the year ended November 20, 1020, 67,000.000 feet of timber were ojCDorted from New Zealand, as asrainst 51,000.000 feot for the preceding twelve months, the sii surest ion being that the exports accounted for prices heTe. The figures are apwoximatelv correct, bnt the deduction is faulty. The increase in export was due entirely to the sale abroad of white pine, which was expoTted under permit after the local dpmand for this timber had been satisfied. Th-e white pine is not suitable for building purposes. The Board of Trade controls the e-tport of timber under a permit system, and it released this white pine because the local market did not rerjurrc the timber. It should be noted moreover, that for the same perods fhe tinrbeT imported into New Zealand amounted to over 17,000.000 feet for 1020 as apainst f>,00.444 odd feet fnr 1919. Sa-wn f-nrber imported amounted to 4.fW1.000 feet for the 1920 period, and 2.318.000 for the lftlfl period. The imports, therefore, increased in far gToater ratio than the export?. The connection between ex-ports and imports is much closer than tin , public has been led to understand. of the larjrest exporters are also importers, and it is n.i mis-statement of the facts to say that we send away white pine and snrphis timber* of other kinds in return for the Australian hardwoods. If we stopped the eXTKirt of -white p : ne 'entirely, the Australians would restrict our supply of hardwood. Then we would see, as was pointed out at the recent conference betn-een tho sa-wmilleT3 and the Minister, the "New Zealand farmer using white nbi , for fpnein-r posts while the Australians made b"fter bnxes of jarrah. T" carry the doctrne of 'conservation of irational resources' to that point would. of course, be utterly absurd."