TIMBER PRICES

Press, Volume LXXXIV, Issue 25547, 15 July 1948, Page 2

TIMBER PRICES

CERTAIN INCREASES RECOMMENDED

(P.A.) WELLINGTON, July 14. Further submissions by the New Zealand Federated Sawmillers’ Association and others, including the Director of Price Control (Mr H. L. Wise), were heard in the application for an increase in the price of sawn timber before the Price Tribunal to-day. Mr Barclay, summing up the basis for the claims by the association, said if production was to be maintained not only a price increase was required but also a definite statement or; Price Tribunal policy as affecting the industry. On behalf of the New Zealand Timber Merchants’ Federation Mr D. Lagan asked that the price increase, if any, granted to millers be translated to merchants’ selling prices and urged that account be taken of the fact that merchants had already over the last six years absorbed very substantial increases in costs.

A submission prepared by Mr P. J. Higgins, on behalf of Totara Sawmills. Ltd., of Ross, South Westland, said that tens of millions of feet of firstgrade rimu had been by-passed by sawmills in Westland because the present price was insufficient to warrant their cleaning out. The submission suggested a plan whereby the sawn timber price be based on the logging price. For the Wellington Builders’ Association, Mr McLean .submitted that it should ’be made worth the millers’ while to cut timber to the sizes and specifications most needed for housing to-day. Submissions by Mr Wise, associated with the Assistant-Director (Mr J. P. Lewin), contained a detailed analysis of figures in the submission of the Sawmillers’ Association. It was stated that many incorrect comparisons had been made. In particular the association’s figure of £4 a foot of daily output as the capitalisation factor on which part of the claim was based was disputed, the Price Control Division estimating the true value at £2 10s. The division, however, recommended certain increases in price to cover some aspects raised by the association. To cover wage costs a permanent increase for 100 board feet of 2.168 d for indigenous and 3.241 d for exotic timber, and a temporary increase for six months to reimburse sawmillers for the period in which all or part of wage costs had been carried of 5.224 d for indigenous and 5.861 d for exotic for millers in Nelson and Marlborough was recommended; for the West Coast, a permanent increase of 15.704 d and a six months’ increase of 10.937 d on indigenous timber; for the remainder of the Dominion, a permanent increase of 3.57 d on indigenous and 3.241 d on exotic and a six months’ increase of 6.867 d on indigenous and 5.61 d on exotic. A recommendation was also made for 5.08 d for 100 feet to be allowed Southland millers to compensate for the amount by which increases granted in 1946 were underrecovered.

This division considered the provision of adequate fire insurance was very desirable, but was opposed to the granting of any increases on that ground, except on the basis of actual premiums paid. The hearing was adjourned till Friday morning.