TIMBER EXPORTS

Press, Volume LXXXIV, Issue 25583, 26 August 1948, Page 3

TIMBER EXPORTS

About 1.500,000 feet of Pinus radiata, intended for export to Australia, is still in Canterbury because of the alteration of the exchange rate, and other districts are similarly affected. The president of the Canterbury Saw millers’ Association. Mr W. Goss , said last evening that Australian merchants could not afford to take delivery of the timber because the price to them had been increased. under the reciprocal trade agreement between Australia and New Zealand, Australia sent hardwoods to the Dominion in return for pinus, and now, because of the disparity in exchange rates, the Australian merchants could not cover the cost of the pinus from New Zealand. “There are only two solutions, as far as I can see.” Mr Goss said. “The first is an alteration in the Australian exchange rate to bring it on a par with that of New Zealand, and the second is some sort of subsidy by the New Zealand Government. New Zealand sawmillers will be hit hard if this state of affairs persists. Even the State mill at Waipa will be affected. It has a huge output, but Australia will not be able to take delivery of it.” Sawmillers with stocks in hand at present might have to sell to get the money needed to carry on, and that would cause a lowering of prices, Mr Goss said. Farmers would also be affected to a considerable extent, as

the royalties for their stands of timber would be decreased. It was almost certain that Australia would not be able to export further shipments of hardwood to New Zealand. The hardwood was used chiefly for railway sleepers, poles and bridge decking.