TIMBER INDUSTRY

New Zealand Herald, Volume LXX, Issue 21548, 20 July 1933, Page 13

TIMBER INDUSTRY

PRESENT PRpTECTION MILLERS URGE RETENTION CHEAP IMPORTS OPPOSED ARGUMENTS TO COMMISSION [by telegraph —owx correspondent] WELLINGTON, Wednesday The retention of the present duties on timber was urged by Mr. A. Seed, secretary of the Dominion Sawmillers' Federation in a statement presented to the Tariff Commission today. Mr. Seed said the existing duties had not been in operation over a sufficiently long period (being enacted only in August, 1930) for their true effects to be judged, and furthermore, 'the new duties had not been effective during any period of normal timber consumption. With the exception of very small supplies of imported woods, other than Australian hardwoods, considered by seme authorities as necessary for special purposes, New Zealand could well be self-sufficient in respect of timber requirements, as there were ample resources for many years to come. The industry was one of the oldest established in the Dominion and performed an admittedly useful and essential function. As an avenue for employment in normal times, it ranked in the forefront of all the main industries of the Dominion, other than farming, and it also provided a wide range of contingent employment for transport and supplies. •

Interest of the State The State had a direct and tangible monetary interest in the industry infinitely greater than those actually engaged in or financing the industry itself. The prospective royalty revenue from sawmilling amounted to £41,549,200, and the prospective freight to railways totalled £57,312,000. The importation of low-priced timber was uneconomical to the Dominion, as timber workers who were displaced Qould not be absorbed in other productive employment. , Mr. J. B. Gow: If there was no tariff would there be no timber industry? Mr. Seed: Not necessarily, but the industry would be smaller than it is. Professor Murphy: If this argument is accepted, a positive embargo on imported timber would clearly be to the national advantage? Mr. Seed: Yes. Professor Murphy: You would go as far as to say that it would be in the interests of New Zealand to prohibit imported timber. Mr. Seed: Yes, I would even go to that limit, although I do not consider that it would be necessary.

Professor Murphy: It is fatal when you try to prove too much. If the English farmer applied your argument to exclude New Zealand butter, you would not .doubt that he was on valid grounds ? . ' Mr. Seed: I would not say bo.'l have not studied the butter position. Protection and Prices Professor Murphy: Don't you think that the English farmers could take as a precedent the case set out by New Zealand sawmillers and decide to exclude foreign butter? They could say that they were not going to contribute to the welfare of aliens. Mr. Seed: No, I don't think that the two products are comparable. Professor Murphy: I don't think that is the dividing line, but we will let it go at that. Mr. Seed said it had been contended that protection would raise v internal prices, but that assertion was Jin absolute fallacy. The present measure of protection had become effective only in August, 1930, and timber prices ex country mills had steadily declined since that time. The industry was unquestionably economically and efficiently run. The -balance of trade against tho Dominion with the four timber countries from which New Zealand obtained the bulk of her imported timber was £3,266,452. Surely no more convincing evidence should be requisite- to demonstrate the exceeding unwisdom of making it any easier for these coun- ~ tries to send their surplus timber products to New Zealand. In answer to Professor Murphy, witness stated that timber for containers was being bought from Sweden. Professor Murphy: Do those buying this timber do it to oblige Sweden or to oblige New Zealand? Mr. Seed said that the individuals who bought the timber might benefit, but he did not think there would be benefit to the country as a whole. A Better Proposition Professor Murphy said that the words "unfavourable balance of trade" did not convey anything to him. The more fact that timber was imported from Sweden voluntarily showed that it was a better proposition to obtain it from that source. It was not unwise for a man to buy for as low a price as the law would allow •'him. He asked whether the boxes made from timber were used for sending away the Dominion's exports.® Mr. Seed: Yes. Professor Murphy: That is rather important. We are vitally dependent on our exports, and we are subject to competition from various other countries. Mr. Seed said that they strongly urged tho retention of the present rates of duty on dressed timber. Although wallboards were in fact not timber, nevertheless they wore a timelier substitute, and he urged that the present duty on plaster wallboards bo made applicable to all types of wall- . boards. Professor Murphy asked whether there was any agreement' for pricefixing or regulation of output among sawmillers. Mr. Seed said that there had been an attempt in one small district to regulate prices, but the bulk of sawmills in New Zealand were in competition with one another. Timber Costs in Houses Mr. J. B. Gow: "Do you think cheaper timber would"* benefit those people who are building houses? Mr. Seed: This question has two aspects. From tho aspect of the trv, I would say no, but from the aspect of the house-builder, possibly ' yes. Mr. Seed added that "the amount of timber in a five-roomed house formed only from 17 to 20 per cent of the cost. He refuted tho suggestion that increased protection would raise prices, as protection would give local sawmillers a larger volume of tho market, and by this means they could decrease production costs and thus reduce charges. ~ ~ W. J. Hobson, representing tno Redwood Export Company of San Francisco, asked for a reduction of duty on clear grade Californian redwood, sawn, not dressed. He said_ Californian redwood was the most suitable commercial timber available for J erv purposes. It was very durable an not subject to attack by or other insect pests. It was fire-resist-ing, being very slow to ignito and not burning readily. It ™ »» shrinkage and warpage as lt was ® ee l "J the present duty was excessive. J