THE TIMBER INDUSTRY

Waikato Times, Volume 94, Issue 14818, 5 December 1921, Page 3

THE TIMBER INDUSTRY

TARIFF QUESTION. SAWMILLERS' STATEMENT. The Dominion Federated Sawmille.'s' Association, Limited, is "at present urging upon the Government the desirableness of revising tiie. tariff on imported timber, "and has issued a statement setting forth the following facts:— The timber industry employed during the year ending March ill, 1921, 8544 hands, 13 per cent of the total employed in all industries in the Dominion in 1920. The total wages paid during the year were £1,794,871, 19 per cent of the total wages paid in all industries in 1920. The timber industry stands first of all industries in respect to the number of hands employed and alnount of wages paid, the meatfreezing and preserving industry corning second. The timber industry stands second in the list of all industries in respect of amount of capital involved in fixed assets, the amount being £2,139,670, or 7.23 per cent of that involved in all industries, With respect to the balance, of trade,- it is worthy of note that the value of forest products imported during the year ending December 31, 1920, was £2,173,044, which absorbed 71.9 ner cent of the value of butler exported during the year ending 31st December, 1920. The quantity of sawn timber produced during the year ending 3Jst March, 1921, was 309,162,442, feet. Of this quantity the proportion of lower grades that have been marketed, and that are subjected to displacement by the importation of the lower grades of foreign limber, is as follows: —Rimu, 05,438,389;- white pine, 23,883.009; kauri, 1,969.818; matai, 4,555,366; lolara. 1,781,066; pinus insignia, G,844,868; beech, 1,541,528; total, 106,014,704. At a conservative estimate the value of this quantity, delivered at the point where it would be displaced by imported limber, would be not less than 22s per 100 ft, that is £1,166,161. This sum is approximately distributed as follows (per 100 super feet) : Government and public bodies' revenues: Royalties, is Ud; rates and taxes, is Id; railage. 3s; sawmillcrs' labour costs, 8s 9d: sawmillcrs' other charges, involving contingent industries, 4s 3d: shipping freight. 3s. It will be seen that fully 27.28 per cent of this sum, or £318,129, is a direct revenue to the stole; and the loss of this or of any part of it that is occasioned by the importation of timber cannot be compensated by any less duty than 6s per 100 feet. That is to say, under the new tariff the State derives from imported timber 2s per 100 feet, as against 6s from an equivalent quantity produced in New Zealand. In fact, seeing that the impracticability of marketing these lower grades will compel their destruction at a point where royalties will not be collectable, a tariff which would compensate the Slate would need to be well over 6s per 100 feet. . The loss of revenue occasioned by the importation of timber will not, however, be confined lo that directly shown above, because, coupled with Hie loss of employment by the workers, and by contingent industries, there will be'a proportionate reduction in their contribution to State revenue. There is an 'erroneous idea that, the importation of a given quantity of timber will preserve a similar quantity "I our indigenous timbers, A fairly average proportion of the lower grale limber is contained in every tree from which the higher grades are procured, and it is no more possible to produce only high-grade timber than it would be possible to take the best joint from a live bullock with the idea of leaving the inferior joints to continue grazing. It is our desire to do everything within our power to assist in the carrying out of the Government's forestry policy, but would submit that the importation of low grade foreign limbers is directly opposed to ttie ideals of that policy, viz., the per- , petuation and reasoned -maximum utilisation of the Dominion's forest resources, and in support of this would submit the following: The average log (tree) produces 48 per cent, low grade, and 52 per cent high grade, limbers. In a "general average" forest ol 10,000 super feet to the jacre. .100 acres produces one-million super feet. with 100 per cent utilisation of the tree. If low grade imports displace our 48 per cent of lower grade production, then the hundred acres will produce only 520,000 super feet of marketable limber. Therefore, importation of lower grades means the quicker devastation and not the conservation of our forests. Anything less than 100 per cent utilisation means increased costs on the quantity produced. Apart from the consideration of low grade timbers, there is the aspect of the loss occasioned to Hie country as a whole by the importation generally of timber that miffht be produced in New Zealand. This toss eomes more particularly under the headings of "loss to labour" and "loss of revenue to- the State." Production wages represent 61 per cent of the value of timber produced in New Zealand. For the year ended March 31, 1921, the total import of sawn timber was ' 35,219,066 super feet, value C 728.456, or with laths, palings, etc. a total value of £750,612. We estimate that of this quantity at least 24,440,177 super feet (and the laths, palings, etc., value £549,738, should, with the existence of a truer appreciation of the community's interests, have been replaced by'New Zealand timbers. The foregoing therefore represents a loss of wages (production only) to New Zealand of £335,340, which was paid out lo foreign labour. The average railage paid on New Zealand limbers is 3s 3d per 100 super feet, therefore 'he above replaceable imports meant a loss of revenue to the New Zealand ailways of £39,715. The average royalty to the Stale on timber is Is lid per 100 super feet, therefore the replaceable imports meant a loss of royalty revenue of £23,421. These terns alone mean a loss to the State of eG3,136, which is only relieved by 'lustoms revenue to the extent ol £24,440. Approximately every 100 feet of limber imported puts out of employment one man for one day, hence the 'importation of 35,219,066 super feet 'or the year ending March 31, 1921, neant a loss of 352,19; days' work, or sufficient to employ 1140 men for one ear, or, with an average of four cleendants, lo maintain 5700 persons for me year. It i s worthy of note that Hie timber ndustry noM» has comparatively less protection than at any lime since, 1871, when the present-rate was imposed. The landed cost of imported timber then being less than one-third of today's prices, it follows that on mi ad valorem basis the present duty should be over 6<s. The J'.H9 Timber Commission's recommendation was 3s, when prices were loss than half those now ruling. As showing the extent to which the' limber industry may be affected by (he dumping of foreign timber it is worthy of note that while Australia tins a tariff j of 6s per 100 feet on the smaller sizes.]. of such limbers as Douglas fir, Xew I Zealand, on the presenl schedule; j would admit such timbers at Us perl

100 feet. It follows, therefore, that >vhen seeking for'a market in which to dump their surplus products,'other countries will exploit this Dominion In preference to Australia, and in this manner the tariff erected by Australia has a distinct bearing on the question of sufficiency of p\v- tariff, quite apart from the question of reciprocity between this Dominion and Australia.