MINISTER REVIEWS TIMBER INDUSTRY

Star (Christchurch), Issue 19035, 2 April 1930, Page 10

MINISTER REVIEWS TIMBER INDUSTRY

POSITION NOT SO DIFFICULT, HE SAYS. Per Press Association WELLINGTON, April 2. Referring to the remarks attributed recently to a well-known sawxniller as to the present state of the sawmilling industry being the worst in the history of the country, the Hon W. B. Taverner, Commissioner of State Forests, expressed the opinion that the position was not as difficult as was stated. Nevertheless the facts indicated that the depression, which set in in 1926, had reached rock level last year. What intensified the depression was the undesirable price-cutting policy adopted by some of the smaller operators and the mills were forced to dispose of thenoutput at a loss until finally conditions became so chaotic that the producers were forced to co-operate. After long drawn out negotiations the operators agreed to adopt central sales agencies in the more, important milling regions and since then an improvement had taken place.

“The practical question is: What of the future?” said Mr Taverner. “Balancing the various factors involved I think that we will have to be satisfied with the same demand as has ruled during the last three years. The sales policy requires careful handling. It has, of course, resulted in some producers increasing their previous volume of sales and others in decreasing theirs. These latter naturally look askance at any decrease in their production, often forgetting to consider at the same time their improved earning position, due to the stabilised x>rices and other benefits arising out of the central co-opera-tive sales policy. It is hoped that producers will continue to support this policy and avoil price-cutting, which would bring chaos on the industry.” In answer to a question as to whether there was regional depression in Auckland, the Minister said that he was inclined to think that trade in Auckland was less buoyant at present that elsewhere. At least, that was what would appear from the building statistics from the four main centres for December and January. During the last two years the Auckland permits were down on the corresponding period of the previous) year by almost £140,000, whereas the other centres were up by from £23,698, for Dunedin, to £177,318, for Wellington.