TIMBER PRICES

Press, Volume LXXXIV, Issue 25546, 14 July 1948, Page 6

TIMBER PRICES

MILLERS ASK FOR INCREASE

UNDUE DELAY BY TRIBUNAL ALLEGED

(P.A.) WELLINGTON, July 13. An application for an increase in the price of sawn timber was made today by the New Zealand Federated Sawmillers’ Association before the Price Tribunal in Wellington. The tribunal consisted of Judge Hunter and Messrs L. Munro and P. M. Holloway. For the purposes of the claim, as outlined by Mr W. D. Barclay for the association. New Zealand was divided into three areas—North Island, West Coast of the South Island, and Southland and Otago. An increase of 5/9.88d for 100 feet (board measure) was asked for North Island millers. 5/1.035d for mills in the area covered by the Westland Timber Workers’ Union, and 5/8.09d for Southland-Otago millers. The association submitted that claims were based on three surveys taken before the end of 1947-48 which showed the heed for an increase, first to place the industry on a reasonable margin of return in relation to present capital value, and second to meet increased production costs, including wages, occurring since 1946-47. Submissions showed the risks taken in operating a sawmill and claimed that provision should be made for costs likely to arise from those risks.

Distance from Railways Standing and millable indigenous timber was now becoming further and further from the railhead, said Mr Barclay. In view of this, it would be necessary to relate prices of timber to costs of production in mills situated an average distance of 50 to 60 miles from the railhead.

The association’s statement criticised the Price Tribunal for not fixing a price increase before. “We must protest most strongly against the time lag loss enforced on this industry, a major primary industry, vital to the country’s well-being.” said Mr Barclay. “Undue delay in granting justified price increased adds to the exasperation of sawmillers, who have already a multiplicity of problems, and is not calculated to encourage the millers to open new mills and maintain production, which is the paramount requirement in to-day’s economic conditions.” The association’s submissions will be continued to-morrow.