TIMBER TARIFF.

Auckland Star, Volume LX, Issue 256, 29 October 1929, Page 21

TIMBER TARIFF.

MERCHANTS NOT CONSULTED

PRESIDENT'S STATEMENT.

"VALUABLE ADVICE" AVAILABLE

"It is invariably the practice of the Government when contemplating legislation affecting any particular industry or organisation to consult those concerned in those industries or organisations. When making changes recently in the tariff on imported timbers, however, while some organisations wera consulted, the timber merchants were not called upon to express their views, so that the object aimed at —the assistance of the New Zealand timber and sawmilling industry —was not achieved. Remedial measures are to be sought."

The above statement was made in Wellington by Mr. J. B. who a few days ago was elected president of the New Zealand Timber Merchants' Federation. Mr. Reid was strongly of the opinion that when legislation was contemplated, especially in industrial matters, the Government should consult all tlitfse interested, and this was a view upon which the federation was most emphatic in regard to the changes made in the tariff on imported timbers. On the -other hand, Mr. Reid deprecated the idea of the Government having nominees 011 tlio governing or controlling bodies of any industry, for it was a violation of the principle that the State should not interfere in business and indulge in private enterprise. - t

The timber merchants were not consulted when' the last tariff changes were made. Had they been asked to state their views they could have shown tjie Government how it was possible to bring in a tariff which would not have increased the cost of building and yet at the same time would have assisted the New Zealand sawmilling industry. The sawmillers were given the opportunity of placing their side of the case before the Government, .which then put on an increased duty for the purpose of trying to help the sawmilling industry. And rightly so. Cost of Building Raised. "But has that object been acWeved?" Mr. Reid asked. He quoted redwood boarding, on which the tariff had been increased from 2/ to 5/ per 100 super feet, and said that just as much redwood was being sold with the increased tariff as before, so that the New Zealand saWmiller was gaining no benefit, and the cost of building had been increased by the additional 3/ per 100 super feet on the. weather boarding. The weak point of it was that in putting the duty on weather boarding the Government failed to nominate a New Zealand timber to take its place.

Attention was drawn to the fact that the Government specifications—more particularly in the North Island —were for heart timbers or redwood. There was, said Mr. Reid, a New Zealand timber which was equally as good as redwood, and would give equal if not better service. That was heart niatai, but it was 11/ per 100 super feet dearer than redwood. Furthermore, there would not be nearly enough heart niatai to fill the bill if it were generally used for weather boarding, as the existing supplies were readily absorbed and were heavily used for flooring. Why Costs are Higher. Mr. Reid indicated why the cost of production in New Zealand was higher than in Canada or the United States. A mill might be in existence and a new area of bush two miles away might be taken in. It would probably cost £2000 to construct tl?.e railway for transport to the mill, in whichever country it was, but the important factor was that' in Canada or the United States they would take 100,000 or 150,000 feet of timber per acre off the bu6h, whereas in New Zealand it would only be round about 10,000 feet. Further, tlie great percentage of the timber in America and Canada would be heart timber, probably 75 per cent, whereas in New Zealand the heart timber -would not amount to 25 per cent, and in the South Island was much less' than that. It would benefit tremendously if they could help the miller and the merchant to find an outlet for the 0.8. or second grade timber at a price whi?h would at least return the cost of producing it. Then there - would be a reasonable chance of effecting a reduction in the price of heart timber. Ready to Assist. The industry carried on by the timber merchants in New Zealand was a very important one, said Mr. Reid, and was one in which an enormous amount of capital was invested, employing a great number of men. They were entitled to be heard when any changes in tariff or' other legislation affecting them was contemplated.

"We could give the Government valuable advice from time to time in connection with the industry," concluded Mr. Reid. "We are ready to give every encouragement possible to the use of New Zealand timber for all purposes, Even now if we are taXen into consultation regarding timber tariffs we can show where it is possible to increase the use of New Zealand timber without increasing the cost of building."