TIMBER REGULATIONS

Hokitika Guardian, 8 July 1920, Page 4

TIMBER REGULATIONS

CONSERVING SUPPLIES. METHOD OF PRICE FIXING. WELLINGTON, July 4. A statement of the position governing the export of timber has been issued by Sir Frauds Bell, who is Minister in charge of tho regulations. There was, he stated, considerable misunderstanding regarding this question, and also film price of timber. The export was controlled in such a manner that the limited permits did not reduce by one plank the maximum supply available for the New' Zealand market. The latest increase in price as from July Ist was wholly clue to an increase in wages and other costs at the mill. The Board ol Trade had positive evidence that- on the average the factor of wages was responsible for 70 percent of the cost of timber at the mill. Despite the increase which the millers had been allowed to make by reason of the increased cost of production, the price, of building timber oil the New Zealand market to-day was very much less than the figures offered for export, so that a large saving was effected by the agreement under which the millers were not able to take advantage of the world market. The prices fixed for New Zealand had no relation whatever to the prices which could he obtained for export. The local prices were based strictly oil tho cost,* of production, with only a reasonable profit for the millers. The control of export of building timber and the fixation of prices for supplies distributed in New Zealand were first undertaken in August, 1918. Regulations provided that no timber could be exported from New Zealand except under permit issued by the Minister. At the same time an arrangement was made by the Board of Trade with the saw-millers and merchants by which they agreed that the price of timber for use in New Zealand could not exceed rates fixed by the Baa id. with due regard to the conditions and circumstances. The Board agreed that the prices should be subject to review from time to time in accordance with new factors in the cost of production. In consideration of an increase in muling costs, particularly wages, they had agreed to a proportionate increase of prices in order to place the various sawmillers in a relatively equitable position. The prices were fixed on a basis of “price points,” which meant that the millers received a fixed price at certain places of distribution. By this system of uniformity of price, millers were placed on the same basis for the disposal of their timber, definiteness of price was assured for all users at various distances from the price P ()int centre, and equitablo distribution districts because the millers were not affected by the factor of distributing or other influences outside the price points. When the regulations restricting the export of timber were gazetted, there was a fairly large export trade with Australia by certain mills. Action was promptly taken to reduce this, and to prevent cx. port by new- mills. In the case of rimu, the maximum quantity that could be exported during the year was fixed by Order-in-Council, and provision was also made for a yearly reduction of that quantity, so that the mills which had formerly been doing a large export trade could gradually readjust their business. As new mills could not complain of hardship -by a sudden prohibition of- all export trade, they w-cre not allowed to begin exporting. The export of totara and heart of matai had been absolutely prohibited since April Ist. -No export of building timber whatever had been permitted except from the West Coast of the South Island and the North Auckland district. At present it was impossible to lift from these outlying mills tlie whole of their output for the New Zealand market and if export was absolutely prohibited it would not put another stick of building timber on the Dominion markets. The Board of Trade, with the personal help of the Prime Minister, had been constantly endeavouring during the past year to obtain adequate shipping for supplies of building timber for the Dominion’s many needs. Tlie output of the mills was larger for the past year than it had ever been and this production could have been further increased if sufficient bush labour had been available. Even with the increasing supplies, a timber shortage continued, liecause the demand continued to be abnormal. However, by the operation of the new building regulations it was hoped that the position in regard, to essential building would he gradually improved for the use of all timber was now’ subject to permit, and tlie Board of 'Prude was checking the diversion of timber to non-essential works at the present stage. Naturally the great and insistent demand did not give the millers or merchants an opportunity to dry the timber. The timber for joinery required two years’ seasoning in the ordinary course, but seasoned stocks had been depleted by heavy orders. Tt was hoped to overtake the shortage of timber for joinery and furniture by the use of artificial drying chambers which were being installed in several quarters.