TARIFF ON TIMBER

Taranaki Daily News, 11 August 1930, Page 16

TARIFF ON TIMBER

NEW AUSTRALIAN DUTIES.

PROTESTS BY MERCHANTS.

In a recent statement, the secretary of the Sydney and Suburban Timber Merchants’' Association, Mr. Corke, roundly condemned tlie Government’s proposal to increase duties on timbdr. ■ ‘‘The only effect,” said Mr. Corke, “will be to increase costs, and further to restrict building, and to give a handsome present at tho expense of the public to those who hold heavy stocks of duty paid Oregon. The latest duties are in direct opposition to the consider?ed judgments of the Tariff Board and of tho forestry experts. They will harass, if not quite put out of business, the smaller timber merchants and in great part relieve some large merchants of a difficult financial position. “To-day in Australia there is quite 50%)CD,OffOft. of the size Oregon Which has been so drastically affected and today's duties mean £150,009 to the holders. There has been a complete somersault on the part of tho Government. While some of those concerned will reap a harvest, the public suffers. Costs must come down in all industries, this in particular.”

Mr. Corke quoted from the. report of tho Tariff Board, under date of June 10, which stated that the most hopeful result that could be anticipated from the adoption of tho proposals put forward in regard to Oregon—increasing tho minimum size of junk Oregon from 61n. x 12in. to 10-in. x 12in. —was the replacement of Oregon by Australian hardwood to the extent of, at most, •1,000,009 super feet a year. Hitherto, despite increases in duty, the proportion of Oregon to timber used had become •greater, but assuming that the expectation was fully realised, the question then was: What would be the benefits and costs to the community? Without regard to any additional costa, which would, be entailed by the use of hardwoeds,. said Mr. Corke, it

had. been shown that the extra coet of the imported Oregon would involve «. total additional impost on the building industry of £440,0-00. The compensation to the community for this £440,000 would be the circulation of £250,000 extra wages, which would be earned in milling the additional 40,000,000 super feet of Australian hardwoods. There would also be extra wages earned in sawing down some of the 160,000,000 super feet of Oregon in view of its importation in larger sizes, but this would be to a great extent offset by the loss of wages now paid for all the sawing on the 40,000,000 super feet which would not be imported. The board considered it inevitable that the increase in the cost of building timber, by £440,000 must tend to cheek revival of the building industry. The main' hope of the sawmilling and allied industries lay in the resuscitation of the building trade. An increase in the duty on the raw material of such a labour-employing trade as the building industry was not justifiable for revenue purposes. Moreover, /even when the extra revenue was added to estimate extra wages to be earned, the total sum was less than the extra charge that would fall on the price of timber.

“It is impossible to legislate to please everybody,” declared, the Minister of Customs', Mr. Fenton, in a statement. “If it is shown that any injustices have arisen under the new tariff, steps will be taken for its revision.” The new timber duties, added the Minister, were necessary to safeguard the timber industry of Australia and lift it from the present critical position; nevertheless, to achieve prosperity, a better organisation of the trade was desirable. The value of Australian timber seemed to be realised more in Canada and in Great Britain than in Australia.