TIMBER PRICES

New Zealand Herald, Volume LXXV, Issue 22985, 12 March 1938, Page 14

TIMBER PRICES

INCBEASES APPROVED "FAIR AND REASONABLE" STATEMENT BY MINISTER COMMITTEE'S EXAMINATION [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Friday Recent increases in timber prices have been approved by the Government timber price committee as fair and reasonable, according to a statement made by the Minister of Industries and Commerce, the Hon. D. G. Sullivan, in reply to an urgent question asked by Mr. A. G. Hultquist (Government —Bay of Plenty), in the House of Representatives to-day. Reference was made by Mr. Hultquist to a published statement that following rtn increase of 10 per cent in the wages of timber workers it had been decided by the industry, after investigations by Government officials, to increase the price of timber by 10 per cent and that in practice the increase on lines in demand would be as much as 20 per cent. Wages and Prices Mr. Hultquist asked if there was any foundation for the statement, whether the Minister was aware that when wages were reduced by general order in 1931 by 10 per cent the prices of timber were not by any means reduced to the same extent, and whether he would take steps to see that the timber industry did not exploit the consuming public by an unwarranted increase in the price of timber on the ground that wages had been increased in the industry. Mr. Sullivan said the published statement referred to by Mr. Hultquist was incorrect in that the net average increase in the price of building timbers was 5 per cent over all and not 10 per cent. On only one grade was the increase as great as, 20 per cent, while' on many lines no increase had been made. . Subsequent to the 1931 general order reducing wages the prices of all grades of building timbers were reduced and the over-all reduction exceeded the 10 per cent decrease in wages considerably. At the time of the general order virtually all millers were pricecutting. ''Not Exploiting Public" '.'The timber industry last year gave an undertaking to the Government that no increase would be made in the price of timber until the Government had__an opportunity of examining the industry's proposals and satisfying itself that the industry was not exploiting the public," continued the Minister. "This procedure was adopted in the present instance and after a thorough examination the Government timber price committee advised me that the increases were fair and reasonable. "When submitting the increased prices for approval the sawmillers stated that the present unbalanced demand necessitated the incidence of the price increase being placed on the grades in active demand. If the _ incidence of the demand on various grades was corrected to conform more closely to production the sawmillers would be prepared to review prices immediatelj' and withdraw the list with a view to modifying the large differentials now created by the present unbalanced demand and effect some reduction in average sales value." NO SHORTAGE IN ENGLAND PRICES NOW COMING DOWN [BY TELEGRAPH —PRESS ASSOCIATION'] WELLINGTON, Friday "There is no shortage of timber in England, and, far from prices being high, they have been coming down," said Mr. "C. Peto Bennett, who has been in the timber business in London for 60 years, and arrived to-day by the Rangitata on a health trip. "The limitation of the cut in Norway, Sweden/ Finland, Poland and Czechoslovakia wi'il probably result in prices rising again, however," he added. Apart from the Continent, England drew quite considerable supplies from Canada, continued Mr. Bennett. There was not quite the same demand for timber in England as a short time ago because much of the rebuilding work undertaken was now completed.