THE TIMBER INDUSTRY

Wanganui Chronicle, Volume LXXXIII, Issue 20109, 30 March 1928, Page 9

THE TIMBER INDUSTRY

PRICES LOWER OUTPUT CURTAILED. [ Special “ Chronicle " Service ] WELLINGTON, March 29. Though the new tariff on imported timber has been in operation for six months the New Zealand timber industry is in no better position than it was before the Government granted it concessions last session, states Mr A. Seed, Secretary of the Dominion Sawmillers' Federation. At present prices are lower than they were six months ago, and this is duo to severer competition among sawmillers who have been forced to quit their stock to meet immediate obligations. The position of the industry is shown by the fact that a number of additional mills have been forced to curtail their output and one large mill in the Rotorua district has reduced its hands to half their previous number. The recent tariff has had no visible effect so far, and though the total importations of timber have fallen there is no indication that this drop is due to additional utilisation of New Zealand lumber. With reference to the fallen prices for timber, Mr Seed points out that when a mill has reached the stage of being obliged to liquidate its stocks it frequently has to quit them at whatever price they will realise. This has meant that competition has been very keen.

It is hoped that ultimately the position will improve, and the fact that the past six months have failed to bring any material improvement to the industry is set down to the general financial position as much as anything else. High hopes are entertained for the new system of timber grading which will be launched at an early date, a meeting of sawmillers being called for early in May, and it is felt that the system will help to bring about a better co-ordination between supply and demand.