NO BETTER.

Auckland Star, Volume LIX, Issue 75, 29 March 1928, Page 10

NO BETTER.

THE TIMBER INDUSTRY.

FURTHER FAIX IN PRICES.

HOPES FOR GRADING SYSTEM.

(By Telegraph-—Special to "Star.")

WELLINGTON, this day.

"Though the new tariff on imported timber has been in operation for six months, the New Zealand timber industry is in no better position than it was before the Government granted it concessions last session," states Mr. A. Seed, secretary of the Dominion Sawmillers' Federation. "At present prices are lower than they were six months ago, and this is due to severer competition among millers who have been forced to quit their stock to meet immediate obligation#. The position of the industry is shown by the fact that a number of additional mills have been forced to curtail their output, and one large mill in the Rotorua district has reduced its hands to half their previous number.

"The recent tariff ha-s had no visible effect so far, and though the total importations of timber have fallen, there is no indication that this drop is dn® to additional utilisation of New Zealand lumber."

With reference to the fallen prices for timber, Mr. Seed points out that when a mill has reached the stage of being obliged to liquidate its stocks, it frequently has to quit them at whatever price they will realise. This has meant that competition has been very keen.

It is hoped that ultimately the position will improve, and the fact that the p«®t six months have failed to bring any material improvement to the industry is set down to the general financial position as much as anything else. High hopes are entertained for the new system of timber grading which will b® launched at an early date, a meeting of sawmillers being called for early i* May, and it is felt that the system will help to bring about a better coordination between supplv and demand.