CONTROL OF TIMBER

New Zealand Times, Volume XLVI, Issue 10633, 5 July 1920, Page 6

CONTROL OF TIMBER

THE FIXING OF PRICES EfifcXT OF THE REGULATIONS. Tho Hon. Sir Francis Bell (Commissioner of State Forests and Minister in charge of regulations governing the export of certain building timber) states that there is evidently much misunderstanding concerning the regulations and the price of timber. He says that the export is controlled in such a manner that tho limited permits do not reduce by one board or plank the maximum supply available for the New Zealand market. The latest increase (as from July Ist) in the price of timber was wholly due to ah increase of wages at the mills.

The Hoard of Trade, says the Minister, Jias positive evidence that on the average the factor of wages is responsible tor 70 per cent: of cost of timber at tho mill. Despite the increases which millers have been allowed to make by reason of increased cost of production, the price of building tmu ber on the New Zealand market today is very much less than the figure for export, so that a large saving is effected! for the people of New Zealand by the agreement under which the millers are not able to take advantage cf the world market. The prices fixed for .New Zealand have no relation whatever to the prices which could be obtained for export. Tho local prices are based strictly on cost of production, with only a reasonable profit for the miUera. In order to placo the various sawmillers in a relatively equitable position, he states, the prices are fixed, on a basis of "price points"; this means that the millers receive a fixed price at a certain place of distribution. For example, the price point for millers whose supplies go south of Ohakune is the fixed price on trucks at Ohakune. The millers' connection with the timber ends on the trucks at Ohakune. Similarly the price point for tho West Coast of the South Island is f.o.b. Greymouth, and the price point for Southland is on trucks at Riverton or Tahakopa. Thus, by this system of uniformity of price, millers are placed on the same basis for the disposal of their timber; definiteness of price is assured for all users, at various distances from the price point centre; equitable distribution is facilitated for various districts, because the millers are not affected by the factor of distribution or other influences outside the prico point.

When the regulations restricting export of building timber were gazetted, there was a fairly large export trade with Australia by certain mills. Action was immediately taken to reduce these mills' expoftations and to prevent exportation by new mills. In the case of rimu the maximum quantity that could be exported during a year was definitely fixed by Order-in-Council, and provision was also made for a yearly reduction of that quantity, so that mills which had formerly been doing a large export trade could gradually readjust their business. As new mills cannot complain pf hardship by a sudden prohibition of all export trade, they are nob allowed to begin exporting.' The export of totara and heart matai has been absolutely prohibited. At no time since the quantities of certain timbers for export were fixed have the quantities so allotted amounted to the maximum stated in the Order-in-Council.

Since April Ist no export of building timber whatever has been permitted except from the West Coast of the South Island, and the North of Auckland district. The export permits issued to these twp districts are subject to the condition that full advantage must bo taken of all shipping available for New Zealand ports. At present it is impossible to lift from these outlying mills tho whole of their output for the New Zealand market, and if export was absolutely prohibited, such a bar would not put another stick of building timber on the local markets. The only effect would be to block the mill skids, and then the mills would have to cease operations, with a loss to employers and workers alike. The Board of Trade, with the personal help of the Prime Minister, has been constantly endeavouring during the paßt year to obtain • adequate shipping for supplies, of building timber for tho Dominion's many needs. The output of tho mills was larger for the past yea.r than it _ has ever' been, and this hijj production could have been further increased if sufficient bush labour had been available. _ Even with tho increasing supplies, a timber shortage continues, because tho demand continues to tho abnormal (far in excess of the production). However, by tho operation of tho now building regulations it is hoped that tho position, in regard to ossential building, will be gradually improved, for tho use of all timber is now subject to, permit, and the Board of Trade is checking the diversion of timber to non-essential works at this stage.