SILVER PINE CUTTERS

Grey River Argus, 17 August 1937, Page 7

SILVER PINE CUTTERS

AUSTRALIAN COMPETITION Tn reply to representations macle by him that silver pine cutters be given some assistance to overcome the competition with imported Jarrah posts Mr. J. O’Brien received the following letter from .the Hon. Minister of Customs:— “Dear Mr. O’Brien, I have had further inquiry . regarding the importation of jarrah posts at Gisborne, sold in competition with the silverpine posts produced in the South Island. Under the existing trade agreement between the Commonwealth of Australia and this Dominion rough sawn timber, the produce of either country, is admitted free of all duty into the other country. Split posts the produce of Australia', are dutiable when imported into New Zealand at the rate of Ss per 100 posts but as Jarrah posts are not split they are admissable free of duty as rough sawn timber. The free admission of New Zealand timber into Australia has for some considerable time been regarded as a very valuable concession and the value of our exports of timber to Australia exceeded the value of "our imports of ■timber from that country etfch year from 1931 to 1935 inclusive. In 1936 importations exceeded exportations. Particulars of the exports of timber to and the importations from Australia during the last four years are as follows:—

Exports to Australia: 1933, £277,656; 1934, £305,677; 1935, £347,968; 1936, £242,796. Importations from Australia: 1933, £91,635; 1934, £144,650; 1935, £301,305; 1936, £273,384. The reduction in the value of the exports to Australia last year is due to the present shortage of white pine timber in New Zealand. In this connection you will remember that, in order to conserve our supplies, the exportation of this timber was recently prohibited. Importations consist mainly of hardwood logs, rough sawn hardwod and sleepers. Prior to the arrangement of the present trade agreement with the Commonwealth of Australia interested parties in New Zealand were invited to make representations to this Department regarding alterations or-amendments which they considered should be made to the agreement which had been in force since 1922 and the following quotations taken from a letter dated 14/3/33 sent to the Minister of Customs by the Secretary to the Dominion Federated Sawmillers Association Incorporated is given for your own information. “In response to your recent announcement inviting submissions from interests affected, or likely to be affected, by any possible alteration or amendment of the Tariff Agreement in force between the Government of New Zealand, we wish to prefer the request that no alteration of the existing arrangement in respect of timber imports into the one country from the other be considered.

In support of such request we would very briefly advance the following reasons:— 1. The existing agreement effecting free trade in undressed timbers Australia and New Zealand has now been in force for a number of years and has worked smoothly without detriment to the sawmilling industry of either Commonwealth or Domininion. 2. For many purposes New Zealand does not possess, in sufficiency hardwoods with properties so favourable as those obtainable from Australia. 3. Similarly Australia does not possess softwoods in sufficiency with use properties approaching those available from New Zealand. 4. Consequently each country can accommodate, and actuary needs, the timbers from the other without such timbers coming into serious competition with the product of the home industry. 5. It has been averred on sundry occasions by certain timber interests in the Commonwealth that New Zealand timbers were in conflict with the consumption of the product of the Australian mills. Likewise we could equally claim that in certain directions some of the Australian species do in fact displace the use in either country that the sawmillof New Zealand timbers; but these instances are so relatively negligible ing interests in each can afford to them.” It will be seen that the'Association desired that the existing free ad mission of timber into each country from the other, should be maintained even though it was recognised .that in certain directions some of the Australian timbers do in fact dis place New Zealand timber. • Inquiry which has been mad° shows that the jarrah posts (6ft. x 4in x 3in) are sold in Gisborne at £1.4 10s per 100 which is about, the same as it costs to land silver-pine at that port.. It is understood that the size of the silver-pine posts is 6ft 6in n 6in. x 4in.

For your own information I may say that the inquiries made indicate that Greymouth merchants* are finding considerable difficulty at present in obtaining delivery' of silver-pine posts. Probably you are in a position to know whether or not this is correct. As I have already advised you I am arranging to discuss this matter with my colleagues at an early date. With kind regards.—Yours sincerely, (Signed) MARK FAGAN.