A PRECARIOUS POSITION

New Zealand Times, Volume LIV, Issue 12659, 20 January 1927, Page 7

A PRECARIOUS POSITION

PROBLEMS FACING TIMBER INDUSTRY IN NEW ZEALAND

ROYAL COMMISSION SOUGHT

GOVERNMENT WILLING TO PREPARE SEPARATE REPORT

The precarious situation in which the timber industry in New Zealand has been placed through the influence of various factors was emphasised before four Cabinet Ministers yesterday, when a deputation asked for a Royal Commission to investigate every aspect from the standingrbush to the consumer. The Minister for Finance, Hon. Mr Stewart, expressed the opinion that so far as the tariff aspect of the industry was concerned, a report from Departmental experts would be more equitable than a Royal Commission. He promised to investigate, however.

The deputation was representative of the New Zealand Alliance of Labour, the New Zealand Trades and Labour Councils Federation, and the New Zealand Labour Party, and was received by the Hon. W. Downie Stewart, Afinister for Finance, the Hon. A. D. McLeod, Minister for Industries and Commerce, the Hon. G. J. Anderson, Minister for Labour, and the Hon. O. J. Hawken, Minister for Forestry. It was asked that a Royal Commission should investigate the timber industry, the personnel of the commission to include representatives of the timber works, sawmillers, building trades, farmers and industrial organisations. The order of reference to include the points set out as follow: Whqt are the available timber resources of the Dominion? Does the policy at present in operation ensure full supplies of timber for Dominion consumption ? If not, what steps should be taken to ensure full supplies for the future. How do the afforestation methods as conducted by the State Forest Service, and by private afforestation companies affect the industry, and what will be the effect in future years. WAGES AND Men To report on the organisation of the industry in New Zealand particularly setting out: —lndividuals employed, average wage, total wages, sawmills operating, companies registered, capital invested; profits made and dividends declared by timber companies from 1914 to 1926, agreements operating relative to controlling sales, prioes, etc., organisation of the companies and individuals into associations, timber merchants, operating, stocks of New Zealand and imported timber on hand at the mills, and in timber yards; average percentage of each grade of timber out from average log; measure of control which the larger companies exercise over the trade, in both New Zealand and imported timbers. The number of timber workers unemployed, and the extent to which this is due to: The cutting out of the bush, importation of timber, and the restrictions on use of Nenv Zealand timber by the Government and local authorities. The extent to which the properties contained in the various native and imported timbers rendered them suitable for oertain types of work, and the methods adopted by local governing authorities and the State Advanoes Department to test and determine the suitability or otherwise of certain timbers for building. The extent to which New Zealand and imported timbers are liable to attack and are attacked by wood borers and other destructive parasites. . QUESTION OF COST The full detailed cost of timber production in Canada. United States of America, other countries exporting timber to New Zealand and New Zealand, together with the detailed cost of landing and handling imported timber in New Zealand. The New Zealand figures to show cost of production by: State Forestry Service, the Railway Department, and private sawmilling companies and individuals. The prices charged for timber in New Zealand each year from 1914 to 1926, and the present prioes ruling for: Native timbers by: Sawmillers to timber merchants, sawmillers to builders, timber merchants to builders. Imported timbers by: Canadian and American miller* to timber merchants, Canadian and American millers _ to builders, timber merchants to builder Whether the prices charged during each year have been equitable. Whether ,a price ring or rings has operated, or is in New Zealand for the purpose of maintaining prices of native timber by sawmillers, imported timber and native timber by sawmillers, and/or timber merchants. •COMPARATIVE FIGURES The effect on native timber prices of: The royalties charged by the State Forest Service; the period of tenure allowed for cutting; the charges made by county councils for the use of roads; freight charges: railway, shipping. To examine the imports and exports of timber and particularly to give: A report on the timber imported into New Zealand during the years 1914 to 1926 inclusive, setting out: The quantity, value, and country of origin of each particular name and grade; < by whom it was imported; the price paid for same; the oost of landing; the sale price in New Zealand. Whether timber is being dumped in to New Zealand (i.e., sold to New Zealand buyers at prices below the sale price ruling in the country of manufacture or below cost of production). Full particulars as to the general trade between New Zealand and tho countries from which timber is exported. Tho effect produced on tho general trade and economic life of the Dominion by the importation of timber during the periods of favourable and unfavourable trade balances. Whet her any of tho countries exporting timber to New Zealand levy a duty on timber importations, and if so the rate and amount of duty charged. IMPORTATIONS r The extent to which the importation of timber into New Zealand, particularly from Canada and tho United States of America is affecting the timber industry of the Dominion, and how much of tho effect is due to the methods by which New Zealand timber resources are exploited. The natural advantages operating in Canada and North America owing to: Larger yields of timber per acre; better stands of timber; large scale operations rendered possible by a bigger market. . Tho advantages accruing to Canada and North America through better manufacture, seasoning, utilisation, and elimination of waste. The methods of distributing New Zealand timbers. To examine freight rates charged for timber between: American Pacific port* and New Zealand; Australian porta and New Zealand l ; Baltic ports

and New Zealand : New Zealand timber growing areas and the main cities per Government railways; New Zealand ports (coastwise traffic only). To say whether : The rates charged are ill accord with the service rendered, and to set out the reasons, if any, which would justify, the granting of concession rates by the New Zealand Government railways to the industry. SUITABILITY To supply the following information relative to the use 'of timber for building houses of four, five, and six rooms: The average quantity used of each type and grade; the cost per 100 feet of each type and grade; the most snitablo timbers for particular classes of work. To inquire into the restrietions_plao ed on the export of timber, whether they should continue, and the effect of such restrictions on the industry, and why exnorts have declined from 80,000,000 feet in 1914 to 50,000,000 feet in 1926. The effect which prohibition of importation or the levying of a duty would have on the shipping, building, farming, and mining industries and on prices of New Zealand timber, and whether in the event of prohibition of importations it is possible to, and if possible, the best means _to safeguai’S the interest of the public against increased prices. INDUSTRY THREATENED Mr A. Nash said the timber interests complained that they were being affected through surplus stocks, and through excessive dumping of imported timber. They oould not compete with overseas timber because of the cheaper cost of production of the imported article and the discrepancy in the facilities provided in the respective countries. It had been established that timber could be produced in Canada at 7s Id per 100 feet, and landed here at something over 14s per 100 ft. The request for a Royal Commission was justified by the numerous complaints from .millers and workers, and again by the contradictory evidence bearing upon the trade which'was adduced from time to time. It was essential in justice to the 10,600 people involved, because it had been Shown recently that if the present rate bf importation continued 5000 workers would be unemployed before the winter was over. Mr Cook said that some of the emat mills in the King Country had been sent off for their Christmas holidays with no instructions to return. The assertion had been made that a price governing ring was operating, and this question alone shoujd justify the Royal Commission. Air Cromwell said the position affected the housing question in New Zealand to a great extent. Many obstacles were placed in the way of the small miller getting timber away from the mills—the power of the merchant was much greater than was generally realised. Unemployment would force its unpleasant familiarity upon the Dominion to an even greater extent than last year if the timber industry were not regulated and placed upon a satisfactory basis. STATE MOVING Hon. Mr Ste Wart assured the deputation that the problems of the timber industry were realised by the Government, and had been debated a great deal in the House last session when the question of duty, had been raised. Not only did they realise the problems, but the Government had for some time been collecting information upon the many questions involved in the representations of the deputation. When it had been agreed that the tariff should be revised, ho had realised that the timber industry would require great consideration, and it had been decided to enter upon special investigation without waiting for Hie Tariff Commission to operate. Officers of the department had therefore been investigating and collecting information which would have been primarily required by the commission. There was no reason why this should not be used for a special report apart altogether from the report of the tariff matters. TOO MANY INTERESTS The Minister dill not agree that the commission as suggested was a comprehensive one. On the contrary.it was unwise to have a commission composed of tho various sections of any particular industry which it was proposed to investigate, for past Royal Commissions had shown that where men of obvious interests were thrown together like that, the commission resolved itself into a wrangle in which every interest was working for its own ends. The report upon the tariff in 1921 had been readily adopted because of the comprehensive nature of the arrangements of the facte. Mr P. Fraser: The House did not have an opportunity of examining the evidence. Mr Stewart: They have the Industries Committee, and they have the right to query anything that is brought before them. Mr Fraser: You cannot do that during session. Mr Stewart: My opinion is that you would get better results from a nonpolitical body. If a separate report is required I am prepared to confer with my colleagues, but so far as tile tariff is concerned I am convinced that the manner which I have suggested is tile best way. of going about it. The Hon. A. D. McLeod thought a commission of three would be better than a representative commission of the different interests. The Hon. O. J. Hawken was in agreement with Mr Stewart that it was a matter for experts, and not for a Royal Commission at all.