Furniture may cost more

Press, Volume CXIV, Issue 33448, 1 February 1974, Page 2

Furniture may cost more

(Neto Zealand Press Association)

AUCKLAND.

Ihe prices of some furniture could increase at least 8 per cent as a result of soaring prices for imported timber.

The latest shipment of mahogany—one of the largest cargoes of African mahogany landed in New Zealand—costs almost twice as much as shipments received 12 to 18 months ago. One Auckland company, Airest Industries, Ltd, has obtained approval from the Department of Trade and Industry for average price increases for its products of 8 per cent because of costlier timber imports.

Other firms are likely to increase their prices also. The deputy chairman of the Furniture Manufacturers’ Trade Group (Mr W. K. Waugh) said that mahogany which his firm formerly bought for 43c a square foot now cost 86c a square foot. He had seen quotes of SI to $1.30 a square foot for the next shipment. These quotes had not yet been accepted. but the prices couid apply before the end of the year.

Mr Waugh said that because of shortages of imported timber, most manufacturers had been using New Zealand veneered particle board where they could. Buoyant home markets in Japan and the United States have been partly responsible for scarcity of timber in overseas markets. The shortages have caused a world-wide scramble for timber, European buyers in particular being prepared to pay high prices for it. According to Mr J. C. Aickin. managing director of C. Aickin and Sons, Ltd, a( major mahogany importer, ( there are signs of overseas! prices stabilising. But shipping delays i which have helped to in-' sulate New Zealand against' the higher rates which have’ been ruling in foreign mar-; kets, will mean that any ef-l fects of lower or steadier; prices will take some) months to reach New Zea-; land.