THE COST OF TIMBER.

Press, Volume LIX, Issue 17861, 6 September 1923, Page 5

THE COST OF TIMBER.

EFFECT OF THE ROYALTIES EXCHANGE WITH AUSTRALIA. , The suggestion that tho Government is encouraging an increase in the price of timber, through the operatiooi.s of the State Forest Service, was discussed at Auckland this week, by a gentleman who for many years has been closely identified with the timber industry,, both export and otherwise. Ee referred to the question of increased royttlties, which had been specifically dealt with in a telegram sent to Ministers, by the Auckland Sawmillers and "Woodware Manufacturers' Association- The statement in that telegram tlhs.t ithe Forestry Department was cix acting higher royalties, could, he remailked, be borne out by the fact that on the West Coast, royalties had increased 100 per cent, since the Department had had the administration of certain foresit areas. That being so, it naturally followed that the public had to pay higher prices for sawn timber. Bef erring to the statement by the Commissioner of State Forests that the timber was put on to tho market by auction, this informant pointed out that in such cases a reserve price had always been fixed, and generality that price had been in excess otf current royalties. There had been several transactions where the timber 'had not been submitted to auction, axud where the Department had exercised considerable discretionary powers in disposing of State timber. Where there existed a Forestry Department that was an ambitious and expensive department, it laocessarily followed, this timber expert said, that additional royalties had to bie incurred to compensate for departmental expenditure. Incidentally ho pointed out that the proceeds of the sale of timber were considered by the department as revenue, ■when, in. reality, such income whs derived from; the disposal of a capital as&eti. Particularly did that apply to ka.un timber which, once it was felled 'and sold, could not be replaced. If replacement woro possible, and the ireplncertrcnt value were put en the kauri eold today, it would run into many pounds per hundred feet, having reward to the hundreds of years it takes for a kauri tree to reach maturity. Dealing with the question of timber prices from the viewpoint mf the ordinary man who wants toi buiM, thei speaker said the fact that royalties were increased, must redSe-ct. upon the cost of any building, whether it be a humble "shack" or a palatial residence. Naturally tho consumer was inclined to blame the sawmiller and merchant for the augmentation of prices-; but, in pint of fact, if only the buyer would look a little deeper into the matter, he would the better be able to place the blame upon the shoulders of those who really were responsible. On the question of export, continued this authority, it must bo understood that the effect of the building regulations made it incumbent to use .heart timber, and it naturally (followed that there was a large quantity of sap and' the more perishable variety of wood produced. That wood had a ready sale in Australia, an account of the shortness of supplies of soft -(roods in the Commonwealth. In order to use up the whole contents of a lag, it was necessary that thero shoctld be a> constant outlet for tfie lower- wades. Australia. willingly absorbed l Those lower grades, consequently the sawmiller was able to provide timber required.for the New Zealand market at a lower rata than if such an outlet were closed. As a matter of factj the business with Australia resolved itself into an exchange of commodities, Australia taking New Zealand's soft timber, and in return sending to the Dominion considerable quantities of such hardwoods as jarrah, iron bark, tallow wood, amd other wellknown varieties. I