Timber Merchants Want To Increase Prices

Press, Volume CVIII, Issue 31775, 4 September 1968, Page 26

Timber Merchants Want To Increase Prices

(New Zealand Press Association) WELLINGTON, September 3. The Timber Merchants’ Federation today told the Government of rising costs in industry and said that timber prices would have to be increased.

A delegation from the federation, led by the president (Mr D. E. Hagenson) spent an hour with the Prime Minister (Mr Holyoake), the Minister of Housing (Mr Rae) and the Minister of Works (Mr Allen). i After the meeting, Mr Hagenson said that the Prime Minister had given the submissions every consideration Another meeting would be held in a few days.

Mr Hagenson said costs in the industry had increased as a result of the general wage order, and higher power, cartage, and Post Office charges. “We indicated to the Government that our members would have to increase the price of timber to recover these costs,” said Mr Hagenson. The rises, he said, would vary according to grade. 7 Per Cent Last week, the president of the Sawmillers’ Federation (Mr K. C. A. Carter) said in Auckland that an increase in timber prices was inevitable and some lines could rise 7 per cent. He sent a telegram to the Minister of Industries and Commerce (Mr Marshall) urging an inquiry. Mr Marshall said last night he had asked his department to investigate the planned increases. Fear For Jobs Timber price increases would re-create unemployment in the building industry, the Auckland Master Builders’

Association told the Prime Minister today. Its manager (Mr G. K. Knowles) said in a telegram to Mr Holyoake that recent Government loan measures appeared to be helping employment on house-building. Any concerted move resulting in major price increases would nullify the employment improvements and impose additional hardships on people intending to build homes, he said. Mr Knowles said the Waipa State sawmill in Rotorua had refused to supply the association with a price list. U.S. Parallel? Mr A. Russ, secretary of the Auckland Carpenters’ Union, said there was no justification for the proposed price increase. There was more demand for housing arising from increased State Advances loan limits, bigger overseas orders since devaluation, and the Timber Workers’ Union had agreed not to seek higher wages because of the decline

in timber companies’ business.

“The Government should really go into this, through its Rotorua sawmill,” he said. “They should act like President Johnson did with steel in America—it is a similar basic material. Those who increase get no orders.” “Not As Much” The manager of the Sawmillers’ Federation (Mr W. F Coady) today disputed statements that the proposed timber prices would result in an increase of up to $2OO in the cost of a house. Hie federation had assessed the increase in the cost for a typical all-timber threebedroom unit of 1000 sq. ft as $57.07. “This Increase arises directly from the additional wages cost resulting from the general wage order. I emphasise that no price adjustments have been made to compensate sawmillers for other cost increases which have been incurred over the last 18 months,” he said.