TIMBER INDUSTRY

Dominion, Volume 15, Issue 55, 28 November 1921, Page 7

TIMBER INDUSTRY

A PLEA FOR PROTECTION HEAVY COST OF TIMBER IMPORTS BENEFITS OF LOCAL SUPPLY A memorandum addressed to the Minister of Customs by the Dominion Federated Sawmillers’ Association deals fully with the position and relative importance of the local timber industry, and urges that if is entitled to more protectipn than it is given in the tariff schedules now before Parliament. Amongst other things, the memorandum states that during the year ending March 31, 1921, the timber industry employed 8544 hands, or 13 per cent, of the total employed in 1920 in all 'lndustries in the Dominion covered by the statistical records of manufactories and works. Of industries in this category, it is added, the timber industry stands first in respect to tho number! of hands employed and the amount of wages paid—the wages it paid during the year ending March 31, . 1921, amounted to £1,794,871 —the meat freezing and preserving industry coming second.

The capital invested in fixed assets in the timber industry amounts to £2,139,670. or 7.23 of the capital investeel in all industries covered by the statistical records of manufactories arid works, ft is urged that at a. time when unemployment is rife, “any such industry, the value of whose products is so largely contributed to by labour, is entitled to tho fullest consideration. All rural industries are specially worthy of consideration, because it is Only by encouragement of these that the congestion of population in towns can be avoided.” ' As showing the' large outlay the Dominion is already on importations of timber and other forest products, the memorandum mentions that imports under this head in the year ending December 31, 1920, were valued at £2,173,044. The value of these imports was thus equal to 71.9 per cent, of the butter exported from this country during the same period of twelve months. The memorandum proceeds:— “The quantity of sawn, timber produced during the year ending March 31, 1921, was 309,162,442 feet. Of this quantity the proportion of lower grades that have been marketed and that are subject to displacement by the importation of the lower grades of foreign timber, is BS follows Feet. Rinni 65,438.389 White, pine •••• 23,883,669 Kauri 1,969,818 Matai 4,555,366 Totara ....: 1,781,066 Pinus insignia 6,844,868 Beech .. 1,511,528 106,014,704 “At a conservative estimate, tho value of this quantity, delivered at the point where it would be displaced by imported timber, would be not less than 225. pet 100 ft., that is £1,166,161. This sum is approximately distributed -as follows (per 100 super feet): — Government and Public Bodies'

•Total of three preceding items. Threatened Loss of Revenue. "It will ho seen that fully 27.28 per J of this sum or .£318,129 « icct revenue to the State' a ; 0 nV +hi* or of any part of it that i& occ<i sioned hy the importation of timber canunder the new tariff the State derives from imported timber 2s. per 100 .feet es against 6s. from an equivalent quantity produced in New Zealand. In fact, Feeing that the impracticability of marketing these lower grades will compe their destruction at a point where rojalties will not bo collectable, a tariff which would compensate, the State- would need to be well over 6s. per 100 feet "The loss of revenue occasioned by th 0 importation of timber will not, however, be confined to that direc ? above, because, coupled with the loss o employment by the workers -and by con industries, there will be a proportionate reduction in their contribution to State revenues.”

Timber Imports Entail Waste. It is a mistake, the memorandum suppose that the impor ation of a riven quantity of timbei will pie servo a similar quantity of our »J--renous timbers for future' use. A proportion of low-grade Timber is in every tree cut down, 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 join te to continue grazing. It, in maiketing th. bullock, the butcher can only soli the superior joints, the price obtained, fol such must atao pay for production of the inferior joints; and although tl users of timber may delude themselves with the idea that by getting their supplies of lower-grade timber from outside Luries, they will effect a saying of the difference in cost betwen such imported timber and that produced in the. Dominion, they fail to realise that, they will have to pay such additional price for the higher grades as will compensate for the destruction of, or the loss sustained in the marketing of, the lower-grad? timber unavoidably produced while procuring the higher grades . ' "We wish here io state, that 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 timbers is directly opposed to the Ideals of that policy, viz., the perpetuation and reasoned maximum utilisation of tlrn Dominion s forest re-■fi-ciirces- —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 timbers. In a 'general average forest of 10,006 super, feet to the acre, 100 acres produces 1,000,000 super, feet with 100 per cent, utilisation of tho 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 timber. Therefore, importation of lower grades means the quicker devastation and not the conservation of Our forests. Anything loss than 100 per cent, utilisation means increased costs on tho quantity produced.” The Loss to Labour. Dealing with other aspects of the loss incurred in importing low-grade timber, the memorandum states that production wages represent Cl per cent, of the value of timber produced in New Zealand For the year ending March 31, 1821, the

total import of sawn timber was 35,219,066 superficial feet, valued at £728,456, or, with laths, palings, etc., a total value of £750,612. “We estimate that of this quantity at least 24,440,177 superficial feet (and tho laths, palings, etc.), value £549,738, should, with the existence? of a truer appreciation of tho community’s interests, have /been replaced by New Zealand timbers. . . lhe foregoing, therefore, represents a loss or wages (production only) to New Zealand of £335,340, which was paid out to ioreign labour.” The memorandum estimates the loss of tho State on that part of last year’s timber imports which might have been replaced by local timbers at £39,715 in railway charges, and £23,421 in royalties. "TJ 103 e 1 °„ C L mean a loss to the State of , , which is only relieved by Oustoms .revenue to the extent of £24,440. Approximately,” it is added, evety lu dred fe»t of timber imported into. New Zealand puts out of employment one man for one day, hence the importation of 35,219.666 superficial feet lor the year ending March 31. 1921, meant a loss of 352,191 days' work, or sufficient to em« ploy 1149 men for one year, or, with an average of four dependants o tain, 5700 persons for ono year.

Stringent Control and Low Duty. “In conclusion, we SjWUt? ”»■ lation of prices within the Domimon. This assistance has given hi face of the knowledge that prices ■ obtainable for export have been consideiaoly ln„liei than as supplied to Domrmon 3 n U . . . Having been subjected to a co that has, in the interests of the users of timber, been so detrimental to the timber industry, we s “ b ’ ult , tl | un . should not now be singled, out for un ft: industry now has comparatively less projection than at any time since 1871 when the present rate was inpo-ed TI lauded cost of im P ol : t I , ed a to day's being less than one-third of to-day a prices it follows that on an ad valorem Nasis ’the present duty should be over fis The 1909 Timber Commission o r commendation was 35., when prices were less than half those now ruling.

Revenues. Per • ’ r', x : • •’ i S. cl. cent. i n 8.72 Hoj dltics 4 92 Kates ana 3 0 13.64 *6 0 *27.28 Sawmillers’ labour costs ... 8 9 39.77 Sawmillei's* lotihlr charges involving conting ent in4 3 19.31 Shipping freight 3 0 13.64 22.0 100.00