SLUMP IN TIMBER

Waikato Independent, Volume XXXVII, Issue 3272, 27 February 1937, Page 7

SLUMP IN TIMBER

EFFECT OF HOUSING SCHEME

PRIVATE BUILDING SLACK The slump in timber at present being experienced is ascribed to the uncertainty prevailing as to the elects of the Government housing scheme, says the "King Country Chronicle." Since about the middle of September the timber railings, from Te Kuiti station at least, have fallen off very considerably. Whereas builders some months ago had some difficulty in obtaining supplies now the millers, it is stated, are accumulating stocks of timber which they are finding it difficult to get rid of, though it is hoped that when the Government housing scheme is in full swing much timber will be used. The Te Kuiti railway station's figures include all timber going north from between Waione siding and the Te Kuiti station, and is only second to National Park for the greatest timber railings in the North Island. The position at Te Kuiti is this: From March 31 up to about the beginning of September the railings increased by leaps and bounds, and 2882 tons, or 1,296,000 superficial feet of timber were carried over and above that for the same period in the previous year. But since then the position has been very different. Railings have slumped badly, and the position at the end of January was that 22,130 tons of timber had been carried during the 10 months from the beginning of the financial year, as against 24,257 for the corresponding period of the previous year. Thus, despite the rise at the beginning of the year, the railways were 2127 tons, or 957,150 feet below those for the corresponding period of last year. The reason for the slump is ascribed by millers and carpenters to the doubt and fear of the consequences of the Government building scheme. A local builder said that no one seemed ready to erect houses when the Government's scheme was in the air. This did not refer to this district alone, but the difficulty prevailed generally. People were not ready to invest in houses when the Government was, apparently, going to build all over the country at a cut rate, and lessen the return on their investment.'

A miller, when shown the railway figures, agreed that there had been a slump in timber during the past few months. ,He was principally interested, in white pine, but cut a fair amount of rimu. A few months ago there was a heavy demand for this timber, but now it was very slack. He said the mills turning out building timber must have been very hard hit—particularly those new ones which have been started up south of Te Kuiti by men, encouraged by the higher prices for timber, who now find it difficult to dispose of their output. One theory advanced was that the millers are holding their stocks in the hope of securing contracts for the supply of timber in large quantities for the housing schemes. No doubt when the building scheme is in full swing a large quantity of building timber will be thus absorbed.