TIMBER PRICES

Nelson Evening Mail, Volume LVI, 16 August 1924, Page 11

TIMBER PRICES

GOVERNMENT AND EXPLOITATION

STATEMENTS IN THE HOUSE

(By Telegraph.—Special to The Mail.)

WELLINGTON, This Day. The question of limber prices was raised in the House by Mr Wilford, who asked whether the Prime Minister would go into the matter. He mentioned that he had received a quotation for timber which was 10/- to 14/- a 100 feet less than that quoted by the Associated Sawmillers.

So far as exploitation of the public is concerned, said Mr Massey, tne (.Government is out to stop exploitation every time and in every possible direction.

Mr Wilford : We are ready to help. Mr Massey: I am very glad to hear that. The Minister of Industries and Commerce (tlie Hon. W. Downie Stewart) said there was great danger in attempting to fix the prices of timber. Quoting from a Departmental report, the Minister said at times the disparity between the Board of Trade fixed prices and the export price over which no price control was exercised, was as high as 7/per 100 super feet. If the price had been regulated by supply and demand, during stages of acute shortage, an’inflated price, prohibitive to many users, would have resulted. The actual cost of timber used in a modern dwelling, represented an average of only eighteen per cent of the total cost. Therefore an increase of a few shillings per hundred feet of timber was not so' serious a. factor in the cost of building as most critics alleged. One difficulty was that where a lot of mills were operating on a different basis, the tendency always was to fix a price that would nob wipe out the least inefficient mill. It was something like a cavalry charge in which the pace was set according to the speed of the slowest horse. On the other hand, if prices were fixed in such a manner as to enable inefficient mills to make a reasonable profit, too high a profit would be yielded to those that were efficient. .So far as lie could see. the only effective way of dealing with price fixing and the operation of monopolies was State competition, but at tho present time he could not, ask for money to start State brickworks and other Works. That, however, was the only means of bolding down prices. Mr Forbes said tlie .Labour party’s, policy was State socialism and Mr Slewart .might bo bailed by them as a comrado after the statement lie bad made. The Labour Party’s policy was not likely to come into operation for a good many years, s 6 the Minister might still try to'break down exploitation by other means.