TIMBER INDUSTRY

Otago Daily Times, Issue 25964, 3 October 1945, Page 4

TIMBER INDUSTRY

PRICE INCREASES APPROVED

REQUIREMENTS OF HOUSING HIGHER WAGE SCALE ARRANGED (P.A.) WELLINGTON, Oct. 2., Decisions affecting the economic position of - the sawmilling industry were announced to-night by the Minister in Charge of Stabilisation, Mr D. G. Sullivan. The Minister said that for several months a Dominion-wide investigation into the economic and financial position of the sawmilling industry had been in progress. This investigation was not complete, but- the evidence to hand had shown that in certain districts sawmillers were in immediate need of financial relief. Since the housing situation made it urgently necessary to attain the highest possible production ol timber, the Government had decided to give relief without delay to those sections of the industry which had been shown to need it. Further consideration would be given to the financial position of the industry as a whole when the investigation now in progress had been completed. Steps to Attract Workers

The Government, Mr Sullivan said, was also seriously concerned with the labour situation which had developed in the sawmillin? industry. If housing and industrial needs were to be met it was estimated that the recuitment of well over 1000 new workers would be required in the next two or three years. At the present time, unfortunately, the sawmilling industry was losing ground in respect of labour supply, mainly owing to the fact that the conditions of employment were not sufficiently attractive. In order, therefore, that the industry might increase its labour force and attract the best types of labour, employers and employees had agreed, with the approval of the Government, that as from September 24 the rates of wages payable in country sawmills cutting indigenous timbers should be advanced by Is to Is 6d a day. To meet the consequent increases in costs some adjustment of timber prices had been necessary. Summarising the effect of these price changes. The Minister stated that the approvals granted for most grades of North Island and Southland indigenous timbers amounted to 2s per 100 board feet, which would enable the sawmillers concerned to cover the increased wage costs and have an allowance of 9d per 100 board feet in respect of other cost increases. Elsewhere. pending the completion of the investigation now in progress, the price of indigenous timbers would be increased by 8d per 100 board feet, this being the estimated cost of the wage changes in the districts concerned. The prices if insignis pine and other exotic timbers throughout the Dominion had been increased by 6d per 100 board feet to cover general cost increases. The wage increases did not apply to sawmills cutting exotic timbers. Comparison with World Prices

“These changes,” Mr Sullivan said, “should be seen against the background of the worldwide timber shortage. After careful consideration of all the factors involved the Government has reached the conclusion that the desired expansion of New Zealand’s timber industry cannot be achieved without some revision of the existing price system. Even so, it should be remembered that the increase in timber prices in New Zealand, including this latest increase, has been substantially less than that in most other countries. Since 1939, for instance, timber prices in New Zealand have risen less than half as much relatively as timber, prices in North America.”