TIMBER PRICES AND WAGES

Southland Times, Issue 25794, 4 October 1945, Page 4

TIMBER PRICES AND WAGES

Minister Announces Increases

RELIEF NEEDED BY . INDUSTRY

(P.A.) WELLINGTON, October 3. Decisions affecting the economic position of the sawmilling industry were announced by the Minister in Charge of Stabilization (Mr Sullivan). The Minister stated 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 the sawmillers were in immediate need of financial relief. Since the housing j situation made it urgently necessary to attain the highest possible production of 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.

The Government was also seriously concerned with'the labour situation which had developed in the sawmilling industry. If housing and industrial needs were to be met it was estimated that the recruitment of well over 1000 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 the 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, the 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 would be advanced by 1/- to 1/6 a day. HIGHER COSTS TO BE MET

To meet the consequent increases in costs, some adjustment of timber prices had been necessary. Summarizing the effect of these price changes, the Minister stated that approvals granted for most grades of North Island and Southland indigenous timbers amounted to 2/- per 100 board feet, which would enable the sawmillers concerned to cover increased wage costs and have an allowance of 9d per 100 board feet concerning other cost increases. Elsewhere, pending the completion of the investigation now in progress, the price of indigenous timbers would be increased to 8d per 100 board feet, this being the estimated cost of the wage changes in the districts concerned. The prices of insignis pine and other exotic timbers throughout the Dominion had been increased by 6d per 100 board feet to cover the general cost of increases. The wage increases do not apply to sawmills cutting exotic timber. “These changes,” said Mr Sullivan, “should be seen against the background of the world-wide 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 somerevision 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.”