TIMBER INDUSTRY

Evening Post, Volume CXIII, Issue 15, 19 January 1927, Page 10

TIMBER INDUSTRY

3fQUH,Y INTO .WOBKINa

A'LABOUR REQUEST

ROYAL COMMISSION WANTED

■ A deputation from tho Alliance of Labour, the New Zealand Trades and Labour Councils' Federation, and the New Zealand Labour Party urged representatives of the Government this afternoon to set up immediately a Royal Commission to,inquire into the position and working of the timber industry of the Dominion.

The Ministers approached were the Minister of Customs (the Hon. W. Downie StewaTt), the Minitser of Industries and Commerce (the Hon. A. D. M'Leod), and the Minister in Charge of the Forestry Department (the Hon. O. J. Hawken). The Minister of Labour (the Hon. G. J. Anderson) and the Minister of Internal Affairs (the Hon. E. F. Bollard) were also present. Messrs. P. Eraser, M.P., ,and E. .M'KeeUj M.P., accompanied the

deputation. /

It was suggested that, the personnel of ■ the Commission should include representatives of the timber workers,.' * sawmillers, building trades, farmers, and industrial organisations. Lengthy draft proposals in connection with the scope of inquiry were presented, ask- | ing for information in much detail concerning the organisation of the industry in New Zealand, the capital invested, total wages paid, number of mills operating, profits and dividends : of companies, stocks of timber at the mills and in yards, the detailed cost of production of imported timbers, actual , landed cost, selling prices, etc. It was submitted that the present menace to the industry might be largely due to uneconomical and ineffieinet methods, as an enormous proportion of waste between bush and the consumer was admitted on all sides. The deputation asked for facts to be elicited so as to enable waste to be eliminated and rcor-' ganisatlon effected.

EFFECT OP IMPORTATIONS.

Mr. W. Nash, secretary of the Labour Party, referred to a number of possible explanations of the present unsatisfactory state of the industry, and in stressing its importance, said that it supported about 30,000 workers and dependants. He alluded to the restrictions placed on the use of O.B". timber by local body building bylaws, etc., and said that the sawmillers and workers alleged that dumping was taking" place, and that New Zealand could not compete with importations. • Timber could be produced in. Canada and TJ.S.A. for 7s Id per 100 feet, and taking the freight rate at 7s 6d per 100, it appeared that. New Zealand could not hope to- compete. The deputation was of opinion that the evidence on the subject and as to the cost of landing, etc., was so contradictory that a Royal Commission should be set up at. once to make investigations. It was imperative that something should be done before the unemployment difficulty, already acute for this time of the year, became more pronounced. It was stated, that 5000 timEer workers would be thown. idle Unless importations ceased. Me, .A. J. Cook, representing the Alliance of Labour, stated that they were all desirous of seeing that the workers in. the industry were assured of employment. One of the purposes of the Commission, should be to inquire if a price "ring" or "rings'? were operating to maintain prices' in the Dominion. He sincerely trusted the Government would set up a Commission. Speaking on. behalf of the building trades, Mr. Corn well stressed the importance of the matter from the point of view of the cost of building houses and meeting the • housing problem. He alluded to the cost of trucking timber, and urged that in addition to the proposal for the setting up of a Commission the Government should immediately look into the question of unemployment. He felt sure that many of the anomalies in. the industry could be removed; '

INVESTIGATIONS TJNBEB, WAY.

Replying to. the deputation; Mr. Downie Stewart said the Government realised the great importance of the problem affecting the industry, which had been debated at length in the House of Representatives last year when, the proposals for increases in duty on timber were brought down. For some time past the Government had been collecting information on practically all the questions involved in the representations made by the deputation. He said he had foreseen when it was agreed that the tariff should be revised that one of the biggest questions that would' loom up was in connection with the timber industry. Hb had_ conferred with the Minister of Industries and Commerce and the Minister in Charge of the ■ Forestry Department,, and they had agreed that the question was sireh a large one that a special investigation should be made immediately, without waiting for the actual sittings of the Tariff Commission. Officers of those Departments, therefore, had been working for some months, past, gathering all the information possible which primarily would be required in considering the Tariff. He could see no reason why that information should not bemused for the purpose of a special report on the broader aspects of the subject, apart from Tariff matters. •

The personnel of the Commission as proposed by the deputation did not strike him. as ■ comprehensive. There were other sections of the community which might also claim representation —importers, for instance. The Minister said he had given much thought to the form the TariS Commission should take, and he had realised that from certain points of view there were advantages in having a sectional Commission. Ho had come to think, however, that more satisfactory results could be achieved by a Commission of Departmental experts than a Commission such as was suggested. Experience with Commissions in the past seemed to show that where men of obvious interests were thrown together a fight developed between them, each arguing his own standpoint. In 1921 the Government set up a Departmental Commission of Government officers who had no avowed political leanings—men accustomed to studying the history of New Zealand industries—and the result was that when the Commission reported to the House, on each item that came up for dispute the facts were hardly open to dispute. The Tariff went through with record ease, because there were no minority opinions or conflicting reports from the members of the Com° mission. He therefore maintained that fax more satisfactory results could be achieved from a non-political body than from one representing political interests There was a difficulty in that in setting up Commissions the Government encountered no helpful criticism until after the personnel was announced. It was practically impossible to secure confidential information by holding a public inquiry, and he was ceriggn thas sq fer $g T^cfE DEsta?g were

achieved by; pursuing the present policy.

The Minister in Charge of tho Department of Industries and Comniereo (the Hon. A. D. M'Leod) said ho thought a Commission would serve a very useful purpos>, but Hot constituted as suggested. An economic Commission was required, and evidence could bo obtained from all sections affected. Tho largest field of employers of labour was in. the primary industry, which could not afford to pay tho wages that industry demanded. 'He considered a Commission of three experts would be the best course to adopt.

Mr. Hawken also thought that an economic survey of the industry would bo the most desirable means of investigation He. pointed out that in America tho services of experts were solicited; they went into the economical aspect, and on their reports decisions were made. The layman was not capable of doing the work of an expert. Moreover, to get at the real facts access must bo had to confidential information. • . ■ Mr. Stewart said he would consider the deputation's suggestion with' his colleagues.