THE TIMBER INDUSTRY

Northern Advocate, 24 September 1927, Page 7

THE TIMBER INDUSTRY

COMMISSION’S REPORT

REASON POE DEPRESSION. A ; COMPREHENSIVE DOCUMENT. (Per Press Association.) 1 WELLINGTON, This Day. The report of the Timber Commission says it is satisfied that the relatively depressed conditions that exist in the New Zealand timber industry have'been caused by:—

(a) A reduction in the demand for building timber in general. (b) Higher productive capacity in recent years, as indicated by production, number of mills and employees in the industry.

(c) Reduction in the demand for export. (d) The increased use of wall board as a substitute for timber. (e) Relatively high cost of production in certain of the more recently established mills.

(f) Relatively high wages paid in recent years.

(g) Increased importation

The cost of production is, generally speaking, appreciably greater in new-ly-established mills. Their profit is less and, coupled with, a decline in the demand, has forced some of them out of business. There must be some readjustment of the productive capacity, for not even a prohibitive tariff could cope with existing conditions. It would not be to the advantage of the country to have a tariff aiming at the maintenance of the -whole of the present milling capacity. There is a great difference in the grading of timbers between the North and South Islands, which enables imported timber to compete with the former much more keenly than with the latter. As between' Auckland and Wellington, there is a disparity in price of 10s per 100 ft,• and no duty that could be justifiably imposed could overcome it. Moreover, price competition between mills favoured by location or cheap leases and others not so favourably situated is still in existence. The Commission considers that cost and prices in this industry must still lead to an increase, and it comes to the conclusion that the importance of the industry, its relation to the general economic welfare of the Dominion and the necessities of the position justify a moderate increase in the tariff. Existing duties are relatively low in amount, and almost any increase would therefore appear substantial in relation to the existing tariff. It is recommended that the duty on rough-sawn timber be increased ■ 4s per IGO super feet, provided that on timber of minimum sectional area of 150 square inches or more, and also of lengths of not less than 25 feet, the duty shall be 2s per 100 super feet. This latter provision is recommended to get the position in relation to large-sized timbers, required for special uses. It is further recommended that the duty on sawn-dressed ‘timber be in creased to 7s per 100 super feet. An increase of Ss per 100 super feet in the case of dressed timber, as compared with an increase of 2s recommended in the case of rough sawn timber, is suggested, for the reason that dressed timber is usually imported in comparatively thin sizes and consequently, -on a superficial footage basis, bears a duty relatively low in relation to its finished value.. —Press Assn.