HOUSING.

Hawera Star, Volume XLVIII, 16 August 1924, Page 7

HOUSING.

COST OF TIMBER. EXPLOITATION ALLEGED. ‘‘G ENTLEMEN\S AGREEMENTS.’ ’ (BY TELEGRAPH —PRESS ASSOCIATION.) WELLINGTON, Aug. 15. A request to the Premier to do something which u'ould bring the price of timber within the reach of those desiring to build homes urns made by the Leader of the Opposition (Mr. T. M. Wilford) in the House to-day. Mr. Wilford quoted from a letter in uhich the writer stated that he was able to purchase timber from a mill outside the timber ring at from 10s to 14s per hundred less than the price charged by the combine. It had been said that a big factor in house-building M’as labour, but if this correspondent’s statement u T as correct labour was not the only factor. He M-as Mailing to hand the letter over to the Government. If the statements in it were not true then they could be exposed, and if they -were true then legislation should be brought down to deal udth this monopoly which M as exploiting the people. Mr. Massey said the Government M-as out after exploiting combines as much as anyone, and he would be glad to look into the case quoted by the Leader of the Opposition. So far as the State sawmills Mere concerned he had just been looking into the position, and lie .found'that a big saMunill at Frankton, uliicl] Mas under the Raihvay Department. Mas able to build a five-roomed house at. £7OO, u'hich he thought was most satisfactory.

Mr. J. A. Nash (Palmerston North) mentioned that information had recently been given to a Parliamentary committee that the Government saunnills Mere supplying timber for Government houses at 5s per lumtTred beloM' the tariff rates. The Hon W. Downie Stcn'art said there M as a danger in fixing th© prices of timber. They -would create a still stronger combine in trying to intervene where there appeared to be exploitation, and one had to take care not to intensify the position. When prices were fixed in' Australia the result had been a general rise in the cost. In a report on the timber position in New Zealand his department had pointed out that during the M-ar years price control was effective, a.s was demonstrated by the rfact that exported timber, over which there M-as no control, M-as quoted 7s higher. It had to be remembered that u r here several mills were in competition, some efficient and some inefficient, the tendency M-as to fix the price at such a rate as would give a reasonable profit -to the inefficient mill, which would be a high profit for the efficient mill. Mr. Wilford remarked that he had not suggested fixing prices. What he wanted M'as an inquiry to see whether the timber combine should or should not be prosecuted. Mr. Steu’art : We are prosecuting one combine with the. and M’e prosecuted coalovvners. Mr. Milford: But there is no penalty. Continuing, Mr. Ste M-art said one of his difficulties M-as that there avere so many “gentlemen’s agreements” in existence, and it was impossible to get the proof necessary to secure a conviction, The difficulty ivas great and the only effective way to overcome it M-as State competition. He did not care to ask the Government to start brick works and other such things, but it M-as the only, way to hold don-n prices effectively without going through extensive legal proceedings to prove that a monopoly existed. Personally, he favoured State competition, as Mas the case with fire insurance, rather than go through a futile . effort trying to establish a case against combines in a court of law. Mr. G. W. Forbes (Hurunui) said it M-as quite evident that the Minister despaired of dealing u-ith monopolies and trusts except by State competition. That development would, no doubt, be warmly welcomed by members of the Labour Party, as it meant. State socialism. Labour members: Hear, hear.