THE TIMBER INDUSTRY.

Hokitika Guardian, 28 August 1926, Page 1

THE TIMBER INDUSTRY.

HIGHER PROTECTION SUGGESTED SAVING CLAUSE FOR CONSUMERS WELLINGTON, Aug. 27. Tho problem of the New Zealand timber industry was fully discussed in tlio House of Representatives to-dav, when the Industries and Commerce Committee reported on 118 petitions from those engaged in the industry, asking for greater protection against tho competition of imported timbers. The committee reported that while not having sufficient evidence before it to justify recommending additional duties upon imported timbers which are at present dutiable, it is of opinion that timbers other than hardwood which now come in free should ho charged duty at least on the same level as Douglas fir. The committee also recommends that with a view to protecting the consumer any increase in prices above those charged by millers in November, 1925, be set off by an equivalent reduction in the tariff. The committee referred the petitions to the Government for favourable consideration. Mr Holland, leader of the Opposition, commended the report to. the Government’s attention in tho interests of. tho ten thousand workers in the timber industry who were suffering through shortage of employment duo to over importation of timber. Mr Glenn, declaring that twenty-five per cent of the labour used to produce foreign timber brought to New Zealand was black, asked if the Government was going to stand for that. He believed the timber workers got so little wages to-day that 99 per cent of them who had families would be able to claim the family allowance. He concluded a further strong plea for protection with the remark that lie hoped his little homily would be taken to heart by the Minister of Customs.

Sir Joseph Ward, who followed, suggested that the Minister of Customs would take notice of the whole-hearted condemnation of his supporter. Tho Hon. W. Nosworthy: Ho will he in your party soon. (Laughter). Sir Joseph "Ward suggested that the timber industry had been allowed to drift too long until it was in a had way. He believed it must he protected, though lie would be unwilling to give a concession to timber millers without a guarantee that the consumers would not ho penalised. Tt was actually possible t-o land Oregon pine in Wellington cheaper than New Zealand timber from Ohakunc. but tho committee was in en-or in imagining that the problem would bo solved hv putting a duty on cedar when Oregon was causing such injury to the Now Zealaud industry. The present, duty had proved inadequate to meet competition from black labour. Timber was being landed in New Zealand at a price cheaper than it was solid in America. Mr Tapley: What is going to ho tho effect on tho cost of building houses? Sir Joseph Ward: Tf putting people out of work is necessary then step building wooden houses. Mr Smith: A guarantee will bo given that timber will not become more expensive. The Hon. A. D. McLeod (Minister of Lands): From what date? Mr Smith: From to-day.

Sir Joseph Ward added that owing to foreign competition Southland mills were working two days short each week. A great industry was being crippled. Tho Hon A. D. McLeod reminded tlie House that tho Minister of Finance had promised to lake some action this session. As Minister in charge of the Industries and Commerce Department, he. considered that some of the exaggerated statements which had been made should ho challenged. One statement. was that thousands of people in tho timber industry were out of employment.. but figures showed that only 10 per cent of New Zcalasd’s timber requirements had been imported. If 25 per cent of the employees were out of work, then some other factor must bo influencing the position. The Government realised that importation Mas becoming serious, and the whole matter, in his opinion, should ho investigated. The Select Committee had not hen able to make sufficient investigation to he able to suggest definite eonelusions regarding the difficulties surrounding the. timber industry. THB price GUARANTEE. “Notwithstanding tho statements of the member for Waimarino.” continued the Minister, “that merchants and millers are prepared to accept present-da} price, when I put that question to the secretary of the. Millers’ Association, ho said ‘No, but they Mould accept prices up to last November.’ Wo do know that until last November the timber millers’ organisation was about one of the host-handled close corporations wo have in New Zealand. (Hear, hear). If they could establish prices on the basis of their price lists of last November, it would be very profitable to the millers.” Mr McLeod declared that at that time a man who tried to get quotations from various millers always got the same figure. Mr Smith: That is contrary to fact.

Mr 11. E. Holland: Is that not true of wheat as woill ?

Mr McLeod replied that he was prepared to admit it, hut the position they would get into in fixing what would he a reasonable profit would be, as he knew from experience, that the Government would he forced into fixing it at a point at which it returned a profit to the worst-produced timber, thus leaving a very handsome profit for tlie host-conducted mills. There was no doubt that the price of rimu and totara was excessively nigh. Mr McCombs controverted the suggestion that wages in the American timber industry were low. He had details of these wages, which went up to 35s and 40s a day. Parliament should he careful not to put a premium on inefficiency. It should have an investigation into the timber industry. Mr Fieild suggested that the high wages men in America were working with others who were on starvation rates. New Zealand millers were quite willing to have their books investigated. While we were crying out about the high cost of living, added MvField, we had no competent Board of Trade to deal with high prices. He was informed that the Forestry Department charged too high a royalty. TIMBER MILLER’S VIEWS. Mr R. W. Smith (Waimnrino) said that to give the industry sufficient holy an extra duty should be placed on Oregon and hemlock. Railway freights paid on New Zealand timber averaged os per 100 feet. They had increased 40 per cent in ten veals. Royalties had become an enormous fac-

tor, owing to the anxiety of the Forestry Department to show a good bal-ance-sheet. This was reflected in private sales, as the Forestry Department’s officers were used for valuations. Thoio ■was a recent case in the Taumarunui district where Natives agreed to sell an area of standing hush to a miller for £3OOO. However, the Native Land Court thought it fair to submit it to auction, when a bid of £4IOO was teceived. The sale could not l>e completed without a valuation being made bv the Forestry Department’s officer, who valued the timber at £9870. The miller could not pay this price, the Natives could not- sell and the Natives worn! have to pay local rates on an area which they could not use. Mr Fraser: A great injustice io give

the Natives £4OOO more?. Mr Smith wont on to declare that if the American worker was competing with the New Zealand worker the latter should he protected. He hoped the Minister of Customs would assert himself in the interests of the New Zealand industry, which was the next ■largest to farming. high profits dented. Continuing, Mr Smith said if was far form correct to say that all millers were making large profits. Many were making very little, and in some cases their £1 shares had dropped to lisfid, while holders had received no dividends in recent times. Of course, odd companies were making profits, simply because thev had bought land very cheaplv vears ago. Some companies had held land forty years and royalties to-day were their reward. , , . Mr Lysnar (Gisborne) thought that

internal causes more than external causes had brought about high prices. The 17,000,000 feet of timber imported could not possibly cause all tlie trouble. At the bottom of the whole thing was the fact that the industry in New Zealand was on a wrong basis. Timber had soared in price without any attempt to check the rise. Millers had had things alt their own way for too long. Something* should bo done to break up the combination which resulted in the submission of only one price when tenders were called. As a rule he was strongly in favour of protecting our industries, hut in this case he did not think the tariff would bring about the desired result. A thorough internal overhaul wo bid he more effective. Mr Fraser, who deplored the attack on the Forestry Department, which had protected Native interests, urged close investigation into the timber trade. One city had • twenty-two distributors, which might be too heavy a burden on tlie consumer.

The discussion lasted until adjournment time, the report being adopted without an opportunity for Mr Harris, chairman of the committe, to make his reply.