Comment From The Capital DECONTROL OF TIMBER PRICES MAY BE SOME MONTHS AWAY

Press, Volume CIV, Issue 30884, 18 October 1965, Page 14

Comment From The Capital DECONTROL OF TIMBER PRICES MAY BE SOME MONTHS AWAY

(From Our Own Reporter) WELLINGTON, Oct. 17. The decontrol of timber prices, which has been described as ’‘imminent” for several months, may now have been deferred almost indefinitely. One source suggests that it might take Place within > six months; another believes that obstacles in its path will take at least a year to remove.

Since a close investigation by officers of the Forestry and Industries and Commerce Departments and others, the Government’s mind on timber decontrol seems to have changed. One important reason is that some categories of timber, notably indigenous, are scarce: and the Government's policy has been to avoid decontrolling scarce items which would inevitably rise in price. As one of the most important New Zealand offerings to the Australia-New Zealand free trade area, timber is in a special' category. The overriding fact, however, is that exotic and indigenous timbers in New Zealand compete with each other. The accessible and quickly-regenerating exotic timbers are competing with the traditional rimu. matai, totara, and kahlkitea in many domestic markets: and to decontrol the prices of exotics while keeping a curb on those of indigenous timbers would not be sound economically. The Government has its special difficulties. As it controls considerably more than half the indigenous forests, by permitting or withholding cutting rights it can determine the availability of native timbers. In the event of price decontrol, this would permit hte Government to influence the price-levels. On the other hand, in exotic as well as in indigenous forests, the Government is entitled to “stumpage rates” on the forests it owns or manages. The variation of stumpage rates could determine whether a contract was profitable or not. Generally speaking, the timber industry will not be unhappy about the postponement of decontrol of timber prices. The industry is not unanimous about the value of unrestricted competition; and many smaller firms are glad of the controls. Migrants Wanted Within a few days, a deputation representative of about 20 employers’ organisations throughout New Zealand will call upon the Minister of Labour (Mr Shand) am’ other Cabinet members, probably including the Prime Minister (Mr Holyoake), to ask that migration be speeded up. The request will be the outcome of an investigation which has taken more than six months,

and which has examined critically most of the statements made by Government members in defence of a restricted immigration programme. Chief among these was the view, attributed to a prominent economist, that each assisted migrant was an inflationary influence, costing the country £2OOO or more in his first year. This view has been repeated in various forms by Mr Shand, who told the Canterbury-Westland branch a of the National Party last May that “if immigration were stopped for a few months, the labour situation would improve,” and by Mr Holyoake, who said it would cost £4O million to bring 20,000 migrants to New Zealand. Economists retained by the manufacturers* group challenge these assertions. They suggest that as it costs £7OOO to educate each New Zealandborn child, it might as well be argued that New Zealand’s position would be improved if its people stopped having children. The organisation claims to have established beyond doubt that New Zealand is seriously short of labour, both skilled and unskilled, and that more permanent settlers are needed to permit the proper expansion of existing industries. It will ask the Government to double the present intake of 4000 assisted migrants yearly, to widen its search for migrants, and to take in unskilled as well as skilled migrants. One of the changes suggested from its observations of procedures in the United Kingdom is that New Zealand immigration officers should get out and look for intending migrants instead of waiting in London for them to appear. A New Zealand office in the Midlands, where there are many potential migrants, is one suggestion. Another is a wider age-limit. If sufficient migrants are not available in the United Kingdom, the Continent should be tapped. The manufacturers say that their need for labour is urgent: the alternative —an unsatisfactory one—is a slackening of effort and enterprise. Their own thoroughness may work against them. Their inquiries have been completed too late to be sure of being debated in Parliament this year.

Though the Prime Minister and others have expressed hopes that the session will finish on Friday, there is no guarantee that the House will not be called back after Labour Day week-end. It is not certain whether the News Media Ownership Bill, the National Library Bill, and other legislation still with Select Committees will be proceeded with. The Statutes Revision Committee has completed its hearing of evidence concerning the News Media Ownership Bill. Some hopes were entertained that this measure would be reported back to the House last Thursday night, which would have allowed the debate to start last Friday; but it has not been seen yet. The hardworked Statutes Revision Committee is also under some pressure to complete its deliberations on the National Library Bill. This measure, as well as’ the Companies Amendment Bill and the Evidence Amendment Bill, may yet have to wait until next session.

The Lands and Agriculture Committee has returned the Stock Amendment Bill to Parliament; but the highly-con-troversial Milk Bill is still with the committee. It may stay there until next year. The Transport Amendment Bill (No. 2) is back from the Road Safety Committee; but there is no assurance that it will be dealt with this week The future of the Medical Advertisements Amendment Bill (which is with the Social Services Committee), the Shops and Offices Amendment Bill (No. 2), and several local measures is also somewhat obscure.

Although there was a notable reduction in the main Order Paper last week, enough is left to more than fill a normal Parliamentary week. Six measures await their committee stages. These include the Education Amendment Bill and the contentious Sale of Liquor Amendment Bill, discussion of which is scheduled for Tuesday night. Seventeen more have yet to have second readings. The News Media Bill alone might have claimed a week of discussion if it had appeared earlier in the session; so might the National Library measure.

Even with sittings extended to midnight, the working time available to allow all this legislation to be disposed of, the Royal Assent given, and the valedictories spoken on Friday, is 27J hours. The alternatives to urgency and all-night sittings seem to be the deferment of some legislation which the Government has declared its intention of completing, or the return of Parliamentarians for up to another fortnight after Labour Day week-end.