THE CEDAR INVASION

Evening Post, Volume CXII, Issue 54, 1 September 1926, Page 10

THE CEDAR INVASION

NEW TIMBER DUTY

WILL TWO SHILLINGS Bfi Di©-_ SIVEt

Under the Government's new* tariff proposals a duty of 2a per 100 super feet is placed on beech-wood, cedar, oak, mahogany, and walnut. The duty i» at the same rate as is already imposed on similar imported timbers. The growing import of the timbers specified is ihe reason why they are being brought into line with, others. • .

Cedpj: is the timber that looms largest in the group. When the timber tariff was fixed cedar (western red cedar, from America) was not looked upon as a timber likely to have a general urn or likely to be imported on a big scale. Cedar has, however, expanded i» mse ! and in consumption in a remarkable manner. As recently as 1923 the importation was approximately only 300,000 feet, but in 1924 it rose to about 1,250,000 ft, and in 1925 to approximately 6,500,000 feet; while for the first six months of 1926 tho importation is already 4,500,000 feet. So it is eaiily the biggest factor concerned in the new duties. , • -■'•:• •. -\ : - ■ Will they succeed iv keeping this American timber out of* New Zealand. As a consequence of its development and application to wider uses, cedar competes largely with native timbers as ■ weather-boarding. How does it compare in this respect with matait According to a business man consulted on this matter, the price quoted by. one selling organisation for niatai 6 and 9xl weather-boarding was 58s I per 100 feet in Wellington (based on a price on trucks at Ohakune of 46s 6d, plus railage 5s 93, plus yarding and profit 5s 9d). This was for green timber; dry would bo 3s extra. . There were, however, some independent sellers. From the latter, th<> lowest price he had heard of for this class of matai was 475. As to its rival, cedar, lor ,6 x 1 weather-boarding stocks the indent price ranged from 65.50 dollars to 68.50 dollars per' 1000 feet, c.i.f., main New Zealand ports,*, equivalent to a mean of 27s 6d per 100 feet. Add to this Is I per 100 for wharfage, 4s per hundred [ for cartage and dressing, and 2s 6d for j yarding, and the maximum cost to the I seller in this country Tyould be 355. The rotail price was about 455, thus showing a margin of 10s. Qn the other hand, the retail price he had taken for maI .t'ai, 475, was the lowest he knew of; and though, the new duty of 2s on cedar would appear to put the two timbers on a level retail price of 475, as a matter of fact he did not think that this duty would really create a competitive level, because the 10s margin that he had shown with regard to cedar (35s cost to importing seller, and 45s retail price) could easily absorb the 2s duty. In fact, the cedar man could easily absorb the duty and go on under-selling niatai. That, at any rate, was the impression of the gentleman interviewed, and he added that the duties on the timbers now made subject to duty could only be a prelude to a general discussion of the whole question of timber protection and sawmill efficiency.