STATE COMPETITION

New Zealand Herald, Volume LXXV, Issue 23021, 26 April 1938, Page 16

STATE COMPETITION

SAWMILL IN OTAGO EFFECT UPON SOUTHLAND [by telegraph—OWN correspondent] INVERCARGILL, Saturday The opinion that the establishment of a State sawmill, such as tho one the State Forest Service announces will be erected at Conical Hills, in Otago, would affect private sawmillers producing low-grade timber for box making, lias been expressed by Southland sawmillers. The manager of one company said any State competition with private enterprise must reflect on the industry, especially if tho business was conducted on a big scale, because the State had unlimited capital. At present there were main' units operating in Southland'and they wero employing a largo number of men. It was difficult as yet, he said, to estimate to what extent the industry would be affected by the Government enterprise, but ono important factor was tho effect it would havo on beech millers in tho disposal of low-grade timbers. Another miller said the sawmillers were hopeful that some arrangement would be mado with the Government wherebv beech millers would be ablo to trade as at present; otherwise the action of tlio would constitute a menace to tho industry. The timber at Conical Hills was the very timber that would operate against low-grade beech, which was an lent box timber. Ho did not think, however, that the Government would go in for large-scale operations against private enterprise. In about two or three years time, ho said, most of the exotic trees in Souhtland would be finished, and the. time would perhaps be more suitable then for the establishment of a State enterprise. There was also the.possibility that the Government would send a portion of its cut overseas, and that would help the position here and relieve the congestion, as there was overproduction already.