SAWMILLING FIRMS OVER-CHARGE

Wanganui Chronicle, Volume 90, Issue 24, 30 January 1946, Page 5

SAWMILLING FIRMS OVER-CHARGE

TOOK CASE TO COURT TO VENTILATE FACTS WEST COAST MILLS OPERATE UNDER HANDICAP (P.A.) Greymouth, Jan. 29. Three sawmiling firms pleaded guilty, before Mr. A. A. McLachlan, S.M., to charges under the Price Emergency Regulations, namely. Butler Brothers Ltd., Ellerslie, Auckland. Stuart and Chapman, Ltd., and Ross and Malfroy and Co., of Hou Hou. The charges were that they sold timber totalling 19,024 feet, 2113 feet, and 3869 feet, respectively, at a surcharge of Is 6d per 100 feet board measure, which surcharge was in excess of the surcharge of 8d per 100 ft. specified in the approval granted bv the Price Tribunal on October 8, 1945. Butlers were fined £lO. with costs. The other two defendants were each fined £5 and costs.

For the Crown, Mr. K. A. Kitch’ngham said the Price Tribunal, last September, annroved of a price increase of two shillings per 100 feet foi North Island millers, but not for millers on the West Coast, where the financial position was not considered by the department to be so critical, though a surcharge of 8d was allowed to cover labour costs. Since 1942 Southland and Otago had been linked w£th the North Island in respect to selling prices, but the West Coast was not included, and had not received the same increases. Last October the Minister of Internal Affairs informed the West Coast millers that to sell at a higher rate than the Tribunal prescribed was a violation of the law. The defendant firms had made unlawful over-charges totalling £ll4O. The department asked a maximum £5OO penalty. For the defence Mr. C. S. Thomas, Christchurch, said a question of principle was involved. Prices were first pegged in 1936. Since that time the coast sawmillers were forced to carry unnecessary burdens. Although they felt the injustice they carried on during the war years rather than retard the war effort. It never had been necessary for the Government to issue a price order for the district till 1944, but several increases had been approved to meet the extra cost of wages. The only increase to cover the cost of production was 3d per 100 feet in 1940. Last year, with the support of the Director of Forestry, increases were asked of one shilling to cover costs and 8d to cover wages, but only the latter was allowed, whereas the North Island and other parts of the South Island were allowed to increase their charges by Is 6d. Regarding this as unfair, the Coast millers, on receiving no satisfaction from the department, found the only course remaining for them was to force the dispute into Court, so that the facts could be ventilated. A survey of the whole industry was now proceeding, and In the North Island had resulted in the Director of Forestry intimating that he would support an increase ®f 4s 6d per 100. instead of the Is 6d already approved. “Sawniillers,” Mr. Thomas continued, “are of the opinion that the fundamental cause of most of their difficulties is that the State Forest Service takes the view tiiat its paramount duty is to depress prices in order to obtain cheap limber. Sawmillers maintain the main duty of tfie Forest Service is to encourage production by good prices and treatment, and so keep the industry in a healthy condition.

Coast millers’ prices were still below pre-slump prices. Production figures for lhe Coast reached a peak in 1940, with 76.981,353 feet, and had dropped to 56.754,429 feet last year. While not asking a minimum penalty. he asked the magistrate to consider the problem in the light that a principle was at stake. “Justice must not only be done, but must be seen to be done,” said the magistrate. “The law stands between the Price Tribunal and the sawmiller in this case, but I cannot condone a breach of the law and a conviction must be entered, and justice done ac- ♦

He expressed the hope that the matter would be satisfactorily concluded. as delaved action was so often evident in such cases.