MIXED RESULTS

Evening Post, Volume CXI, Issue 114, 11 November 1930, Page 15

MIXED RESULTS

SOME ADVANCES

AND SOME BACKWARDNESS

TIMBER INDUSTRY

The bush Bide of sawmiHing appears to be its most efficient sido. ■ Th© marketing outlook is improved by grading rules. But the Forest Servieo reports that seasoning lags. Some smaller mills havo dropped out. Though the New Zealand timber industry is struggling to meet the competition of imports, production of New Zealand timber fell from 307 million feet in 1927 to 270 million feet hi 1928, and is just about the same .in 1929 (or rather less than half a million feet bettor. Bimu averages about 57 per cent, of the cut, kabikatea (white pine) about 21 per cent. The 1929 production was well forecasted by the State Forest Service. The Service predicted 2G9 million feet and the actual cut was 270 million. The predicted cut for the year ended 31st March, 1930, is 272,000,000 feet, b.m., as based upon the monthly timber loadings reported by the New Zealand Rail•ways and published by the "Government Statistician in the Monthly Abstract of Statistics. The outstanding feature of the year's production was the decrease in production of kauri and totaia, the cut being the lowest on record for over ten' years, and reflecting the rapid disappearance of our supplies of virgin stumpage of these two most valuable softwoods of tho Now forests. BUILDING SLACKER. On tho home market side New Zealand timber production is handicapped , by (1) competition and (2) depression of trade.'' Taking the:latter point first, tho Forest Service in its annual report traces trade's upland downs. In tho censal period 1906-10 6400 houses per annum were erected, but in 1911-16 tho number fell to 5600 per annum, and during tho later war years it fell to less than 5000 per annum. "Timber consumption fell in sympathy. After tho cessation of hostilities, tho suspended building activities of the war-period began to crystallise, and new homes were in demand. Further impetus to the movement resulted from the abnormal increase in population, tho average annual natural increase climbing to over 17,000 for the 1921-26 intereensal period as compared with only 15,000 during tho previous period, and the average annual external increase to 10,000 as compared with only 4000 for the 1916-21 period; so that, with tho exception of 1924, every year from 1919 to 1926 showed an increase in building activities. Tho number of new dwellings estimated from the building permits issued in 1926 reached a peak of over 9000, with timber consumption increasing correspondingly. As in the 1906-10 period, tho housing ratio increased rapidly, but instead of again commencing to fall after building activities and timber-consumption had reached their peak, tended to still further increase. The explanation of this lies in the serious fall both in natural and external population increase (from over 28,000 fai 1926 to 16,000 in 1928) and in a large number of people moving from rented houses into new buildincs of their own. It must, therefore, to considered that building activities and timber consumption have progressed at a high level during recent years, and that readjustments to a lower level must be found in tho near future. The trend of things in the current year .is also touched ou iv the report, as follows:—"With a drop in the building permits for-the 1930 January-March period tho domestic demand has slackened. As considered by individual localities, the situation varies considerably, Auckland and Wellington representing tho extremes, with Christphurch and Dunedin ranking between. Whereas in Auckland the building permits for the 1930 January-March period totalled only £337,765, as. compared with £.591,965 for the eorresJonding period of 1929, in Wellington the respective figures were f800,040 and £628,117, in Dunedm £243,971 and £134,980, and in. Chnstchurch £232,296 and £229,-129." VNPER-MACHINED, UNSEASONED. As to the other point, competition of imports, the question of improved efficiency in the New Zealand industry arises. On this the Forest Service rethe field of logging, milling, and marketing, industrial technique continues to show some improvement. Logsine ranks as the most efficient operation of the industry. . .. - Wove, ment in milling practice is hindered by under-capitalisation and by. the surplus of second-hand machinery available throughout the Dominion. In many instances also, mills are underpowered and undermachined, but in thig _ latter direction a real improvement is evident. The downward trend of prices since 1921 has forced producers to study more intensively than over before the possibilities of reducing costs of production, a reflection of which is found in.the wider uso of electrical motors and of various classes of internal-com-bustion engines such as Diesels, etc., as . prime movers; sawing technique, however, has not kept abreast o£ this development, and the use of better carriages and of bandsaws now appear desirable. , "Signal progress has been achieved in the marketing field, the industry having adopted during the last year the grading and classification rules for building timbers developed by the special Government Timber Committee tee in 1928. This ' removes, therefore, one of the difficulties under which tho industry has been operating for many years, different standards and grades having existed not only in the various sawmilling regions, but also in individual mills. Wood users and consumers have suffered from this handicap, and should accordingly benefit from the new standardised national grading rules. ■Little progress, however, has been registered in tho1 field of seasoning technique. Aa noted last year, insanitary yards, poor drainage, low foundations, poor filleting and piling, etc., appear almost typical of tho average sawmill operations, and no marked improvement is. likely until it i 3 frankly recognised thai the ultimate responsibility for the seasoning of timber rests with the producer. "Viewed from tho practical standpoint, the consumer can purchase wellseasoned imported timber, whereas the local product, even when so-called 'dry,' at an advance of 3s per 100 ft b.m. on green prices, carries no guarantee that it is properly air-seasoned, but may further dry out and shrink after delivery. Obviously, tlie responsibility for the condition of his timber does hot concern the consumer.' His one consideration is that it be delivered for use in a satisfactory condition, and the ultimate responsibility for ensuring this must logically rest with the producer. SMAI.LEB. MILLS DECREASE. Of course, the question of the efficiency of small operators as compared with largo operators arises, and it is important to noto that smaller sawmills tend to decrease. "The natural corollary to the upward trend iv production resulting from the increased building activities of the 1919-26 period and the general high level of prices maintained

throughout was "the entry of a large number of new operators into the industry. Tho entry of new mills kept pace with the increased production. What is more significant is that tho 1926-29 depression in the industry bas eliminated a large number of units, and that the industry is now operating at a higher percentage of its,producing capacity than during any other year in the last decade. As' compared with other industries itt.tho Dominion, such as freezing, woollen,' footwear, etc., many of which are operating at under 40 per cent, capacity, it is in fairly healthy condition, especially when consideration is given to the fact that prices arc, ' stabilised and bad debts < lower than | ever, before, Keviewing, however, the various factors involved—that is, posai-| bilities of substitution of local for im- 1 ported woods, increased exports to Aus-1 tralia, and decreased local building activi,ties —it would appear as if the industry is faced for tho next year with a decrease in .production." All the same, the report states that "at no time since the pre-war period has tho industry more nearly approached a rational state of stabilisation, and in no yeai has it achieved morj rapid progress towards this v^ry desirable objective." "The imported hardwoods are divided naturally into two classes of product, those required for constructional purposes—such as polos, sleepers, bridgo and structural timbers, etc.—and those Used for building, interior finish, fitments, furniture, car finishing, etc. To a large extent tho constructional timbers do not enter into competition with the local woods, some of which, although suitable for these purposes, exist in such small quantities as to meet only a small portion of the demand. Nevertheless, it has been possible during recent years to extend the utilisation of these native timbers, and it is largely due to the increased Government purchase of silver pine and totara telegraph poles and sleepers that the importations of hardwoods have receded from 26,000,000 ft b.m. in 1927 to 23,----750,000 ft b.m. in 1928, and to 22,000,----000 ft b.m. in 1929. Of the total hardwood importations, Australia supplies almost 90 per cent., the remainder being oak from Japan, and ash,, hickory, mahogany, oak, - etc.-, from 1 Europe and America. REPLACEMENT BY LOCAL. "The "extent to..which the imported hardwoods might be replaced by locallygrown woods is not easily determined. Theoretically, the total might appear fairly large, but from a practical standpoint it is estimated that under existing conditions only 5,000,000 ft b.m., or 20 per cat., of the total hardwood importations might bo replaced by the use of indigenous species. By research and development work, however, it should bo possible to increase this percentage considerably. "Although tho total importation of hardwoods decreased' by over 1,500,----000 ft b.m., the total importations of softwoods nereased by almost 4,000,----000 ft b.in. from 34,000,000 ft b.m. for the year ended 31st December, 1928, to 38,000,000 ft b.m."during the year ended 31st, December, 1929. "Again, as in the case of the hard-, woods, it is difficult to estimate to what extent the softwoods are replaceable by the local timbers. Douglas fir is required for long, light-structural members which it is difficult to secure from the New Zealand-grown woods, and while important Government and local body building authorities insist upon the wide use of heart timbers for weather boarding, exterior tritn, etc., importations of Californiau redwood and Canadian western .-cd cedar are being used to supplement the local supplies of heart timbers. The importation of fruit cases, which are included in the item 'hemlock and spruce,' appears to have been justified owing to the difficulty of securing a superfine locally manufactured container for the carriage of export fruit, but it is anticipated that in the very near future considerable improvement in tho locally-pro-duced insiguis pine case will qualify it for the export fruit trade. "It would appear that whereas only 17,000,000 ft b.m. out of tho total softwood importations of 35,000,000 ft b.m. might be immediately replaceable by local woods, by improved manufacturing and seasoning technique, and by research and development work this quantity might almost be doubled."