TIMBER RING?

Evening Star, Issue 18714, 16 August 1924, Page 4

TIMBER RING?

HOW TO BREAK IT. MINISTER AND STATE COMPETITION [From Our Parliamentary Reporter.] AVELLINGTON, August 15. Tho operations of an alleged timber ring were discussed in the House. Air Wilford quoted the case of a farmer who had written stating that by going outside the timber ring be had been able to purchase building timber 10s and 14a per 100 ft cheaper than the same quality was offered at by firms within the ring. Tho Government ought to hit those monopolies that were exploiting the public. If a monopoly was doing that, everyone in the House should get together and help to squash it. If the farmer’s allegations,were right, some legislation should be introduced to deal with the ring. The Premier said the Government was out. to. stop exploitation every time. Mr Wilford: We are ready to help.

Mr Massey: lam very glad JO hear it. The Premier then referred to the State saw-mill at F.rankton, which was supplying cut timber to the Railway Department five-roomed houses complete being erected for £7OO.

Mr Wilford; That leaves no profit to the builder.

Air Massey: No! He added that one difficulty was that the State saw-mill had to supply tho Railway Department’s heavy requirements before it could supply private individuals. He expected that the Alinister of Customs, who had a report on the cost of limber, would make a statement. Mr Nash said the Railway Department was doing good work providing houses for its employees at £7OO. Air Langstone: Does it include the land?

Air Nash : The estimated cost of a section is £SO or £6O. It has been ascertained that too State saw-mill supplies timber for these houses at a price 5s below tariff rates.

The Hon. Downio Stewart, Minister of Customs, said there was a danger that in fixing timber prices they would create a still stronger combine. In trying to intervene where there appeared to bo exploitation, one had to take care not to intensify the position. The fixing of prices in Australia seemed to result in a rise in the cost of living. In a report upon the timber position in M T ew Zealand his department had pointed out that during the war years price control was effective, as was demonstrated by the fact that exported timber, over the price of which there was no control, was 7s higher. It had to be remembered that where several mills competed on a different basis, some efficient and some inefficient, the tendency was to fix a price which would give a reasonable profit to the inefficient mills, but a high profit for efficient mills. Mr Wilford : I did not suggest pricefixing ; I suggested an inquiry into the combine, and to see if it should be prosecuted.

The Minister: We are prosecuting one combine—namely, the flour-millers’. Dir Wilford: There is only a fine—no imprisonment. The Minister: Wc prosecuted the coal owners.

Mr Wilford: But there is no penalty! The Minister: The difficulty is that they have all sorts of “ gentlemen’s agreements,” of which we cannot get proof, and it is almost impossible to get conviction. The difficulty is great. The only effective way, as soon as I have proved the existence of a combine amongst saw-millers, is State competition. I cannot ask the Governto start brickworks and other things, but it is the only way you could hold down prices effectively ’without going through enormous legal proceedings to prove that a monopoly exists. I would rather compete with a State effort, as wo do in the State fire insurance 'and other things, than go to the usual futile effort of trying to establish a case against combines in a law court.

Dir Forbes: The Minister evidently despairs of dealing with monopolies and trusts except by State co-operation. That will be welcomed by the members on the Labor benches. (Labor Members : “Hear, hear.”) He evidently thinks that State Socialism is the only satisfactory line upon which a country can be nin. (Labor Members: “Hear, hear.”) They will call him comrade. (Labor Members: “Hear, hear.” I think, however, the Minister might still continue under the present system.