TIMBER INDUSTRY

Evening Post, Volume 50, Issue 50, 27 August 1926, Page 8

TIMBER INDUSTRY

QUESTION OF PROTECTION

COMMITTEE'S RECOMMENDATION

DUTY ON SOFT WOODS.

The Committoe, while not having sufficient evidence before it to justify recommending additional duties being placed upon imported timbers which are at present dutiable, is of opinion that timbers, other than hardwoods, which now come in free, should bo charged a duty at least on tho same level as on Douglas fir. The Committee also recommends that, with a view to protecting the consumer, any increases in prices above those charged by tho millers in November, 1925, bo sot off by an oquivalent reducton in tho tariff.

Finally, in tho opinion of tho Committee, the petitions should bo referred to the Government for favourable consideration.

The above recommendation was mado by tho Industries and Commerce Committee to the House of Representatives yesterday on 118 petitions which had been received praying for greater protection, for tho sawmilliug industry.

The Leader of the Opposition (Mr. H. B. Holland) expressed the view that action should be taken by the Governmont this session. There wore at present about 2000 workers in the timber industry who were cither only intermittently employed, or wholly unemployed. What action should be taken was a matter for the Government to decide. THE GOVERNMENT'S DUTY. Mr. W. S. Glenn (Rangitikei) supported what Mr. Holland had said and appealed to the Government to protect what was the largest industry in the country. He was sure that the Cabinet would consider what was likely to happen to the 10,000 people engaged in the industry. Mr. Glenn alluded to the bankruptcies occurring in New Zealand, and said that the railway freights on New Zealand timber were higher than what it cost to bring foreign timber into New Zealand. Tho .Government had a duty to perform in the matter. (Hear, hear.) Was the Government going to givo an advantage to New Zealand timber over timber grown in foreign countries? He ax>pealed to tho Minister of Customs to do justice to the people engaged in tho industry, of whom about 20 per cent, were unemployed.

The- Eight Hon. Sir Joseph Ward j (Invercargill) considered that the Committee's recommendation was useless. The worst competitor of New Zealand timber was Oregon, and because the report referred to cedar only, did that j mean that relief was going to bo given jto the Now Zealand industry? Action should be taken to prevent the dumping of Oregon timber into Now Zealand. What was wanted was a duty against the product of a country which admitted nothing from New Zealand free. (Hear, hear.) They would not remedy the position until the tariff against American timber was made prohibitive. What good could they do by allowing Oregon to enter at tho present rates when it could compete against timber railed from Ohakune to Wellington? A voice: "What effect will that have on the price of building?" ■ Sir Joseph Ward: "If people cannot erect buildings without turning hundreds and thousands of people into tho streets they should stop building in timber altogether." Mr. R. W. Smith ((Vaimarino) interjected that if New Zealand timber wero protected a guarantee would bo given that the price of New Zealand timber would not bo increased. The Hon. A. D. M'Leod: "When 1?" IMPORTS NOT THE TROUBLE. I The Minister of Industries and Commerce (the Hon. A. D. M'Leod; said that if there were so many unemployed I there must be something more wrong with the timber industry than the importation difficulty. The House was becoming acquainted with exaggerated statements by Mr. Glenn. Up to last November, and, indeed up to tho present, the timber millers' organisation was one of the best conducted organisations in the Dominion, and had adopted a price-fixing policy. Mr. Holland: "Doesn't that apply to wheat as well?"

Mr. M'Leod: "I am not prepared to say that it is not the same with wheat." '

Mr. M'Leod said it was 'admitted that there was a tremendous accumulation of second and third grade timbers. Up to tho beginning of the year the imports of timber had not been sufficient to cause the timber industry to get into the position it was in to-day. He thought it would be unwiso to give special protection through a general tariff for one industry alone. Mr. Glenn raised a point of order. He objected to having been charged with making an exaggerated statement. That was contrary to fact. He had stated that 20 per cen6. of the men in the industry were unemployed, and that deduction was made from the fact that many men were working only 4i days per week. , " FORESTRY DEPARTMENT'S POSITION. Mr. H. Atmoro (Nelson) quoted figures showing the growth of the importation of foreign timbers, and said that the lorcstry Department was being hit by the Industries and Commerce Department, which was allowing tho tinibor to come in. That was an important point. He objected to tho system under which purchasers of forest rights from the Forestry Department had to pay according to tho estimates of timber which were supplied by officers of that Department, but which must often bo inaccurate because they were based on theory. He could not see that tho estimates of a young officer could be placed against the practical knowledge or men who had been engaged in the industry for thirty or -forty years. The estimates of standing timber supplied on tho theoretical date of a departmental officer were often fallacious, and that statement could be proved. It was in the interests of the Forestry Department that they should have reasonable protection, because it would be only a year or two when the sawmillers would have to buy the milling areas troin the Forestry Department. If seventeen million super, feet of timber, or four million super, feet more than the prev'J us year, was allowed to enter the country it was displacing Now Zealand timber, which was of better quality. am satisfied,", said Mr. Atmore, "that you are allowing competition with_ a State Department. When one considers the number of private sawmillers who are buying to-day from the Forestry Department, and realise that the imported timber is doing away with part of the demand for timber that belongs to the Forestry Department, one can see what a. short-sighted policy it will be if tho Government, over all Departments, does not co-ordin-ate efforts and see that the low tariff does not interfere with the sales of tho Forestry Department. There are nearly 10,000 workers with their dependants in tho industry, and it pays tho highest aggregate wage in tho JJominion."

NO HALF MEASURES. Mr. I'\ F. Hockly (Eotorua) said that

they could do without every stick of timber that was imported into Now Zealand.

Voices: "Not hardwood."

Mr. llockly: "Oh, no." T)io House was not proparod for any half measures, and wanted to sco tho industry protected. Who_was honoflling from tho importations'f

Mr. J. S. Dickson (Parnnll): "Tho workers."

Mr. Hoddy: "Not fit all. Tho merchants are bono/iting." Tho aawinillers wcro proparod to guarantee Unit tho prices would not bo raised. A very exhaustive inquiry should bo miulo into tho whole position of tho timber industries, including tho question of royalties In rogard to railway freights, it appeared, that timber Wan being asked to bear the cost of carrying other goods.

That thuro nhould bo an exhaustive inquiry into tho difficuUiei) facing tho timber industry, was tho view expressed by Mr. J. M'Combo (Lyttelton). It was nonseiiHo to tiny that they wanted protection bocauno of tho low wages in America. As a mattor of fact wages in (ho timber industry in America were higher tlian they wore in New Zealand.

Mr. W. H. Field (Otaki) said that all tho milla in hia district woro struggling ei.ncorns, and somo had had to close down altogether. It would be a very serious matter for tho country if tho timber industry was allowed to get in any worse position than it was today. Rawmillers in New Zealand had never been prosperous. There was no reason why they should not have a Board of Trado in Now Zealand that could guard against outrageous prices being charged for commodities, including timber.

Mr. R. W. Smith (Waimariuo) detailed many disadvantages under which millers were suffering, disadvantages whioli mada it essential that there should bo some form of protection. The timber industry should not be forced to carry on against American millers, who were, not hampered by any duty. It was part of the Government's policy that there should be trade within the Empire and protection for British goods. Surely there was an opportunity in tho building industry to put that into operation. A CLOSE CORPORATION. Mr. W. D. Lysnar (Gisborne) said one could not buy enough timber to make a decent gate under £2, Was not that absurd? The millers had been a close corporation and something was required to break up the present position. Not through the tariff, but by internal readjustment would the position bo altered, and tho millers should put thr^ ■ own house in order, and improve the efficiency of the industry. Mr. P. Praser (Wellington Central) said the committee did not recommend that the duties on imported timber should be increased, but that a'duty bo imposed on certain timbers which carried no impost at present. He defondod the Forestry Department against Mr. Atmore's remarks, and said there was no better organised or more useful Department, and that it had justified its existence a hundred times' over.. What was tho use of talking about trading withiu tho Empire when more than half of the timber we imported came from Canada? If Ive assisted Empire trade in the way that some people urged wo would not be developing our own timber industry. The recommendation of the Committee was adopted.