THE PRICE OF TIMBER

Hokitika Guardian, 18 August 1924, Page 4

THE PRICE OF TIMBER

DISCHS.SION IN THE HOl'Sl*

In the House on Friday niyht when discussing tie Estimates, Mr I, M. Wilfnrd, Leader of the J.iheral Party, ii'krd the Prime Minister to do somothiny which would briny the price of timber within reach of those desiring to build la mcs. lie quoted from a letlea in which th.e writer stated that he was able to purchase timber from a mill outside the ring at from 10s to 1 Is per hundred feet less than was charged by the combine. It had been said that a hiy factor in house-btiildiny was labour. lint if his coircspomlenl’s statement was correct labour wa s not the only factor. lie was willing to hand the letter over to the Government. If

tin- statements in it were not true, then they could he exposed. If they were true, then legislation should h • brought down to deal with this monopoly, whicli was exploiting the people.

.Mr Massey said that the (hivetilmetU w tts out after exploit illy combines as

much its anyone, and he would he ylad te, look into the ease quoted by the Leader of the Opposition. fro far as tile State sawmills were concerned he itisl had lean looking into the position, and he found that the hiy -nviii 1 11 at Eraiiktiiii. which was under the Railway Department, was able lo hitil I a five-roomed house at CTtil), which, he

tin-light, was must satisfactory. Mr Nil'll uu'iiliuiied that information had reieiilly been given to a l’nrliaiiuniary committee that the Government sawmills were, .supplying limber lor Government houses at os per hundred helnw"tarilf rales. The Hon \V. Ihiwnie Stewart r-aid that there wits danger in fixing prices of timber. They might create a still

stronger combine. In trying to intervene where there appeared to he cxpluitaiiiin one had to take litre not to intensify the position. \\ hell prices were fixed in Australia the result had I.tcn a general rise in cost. In a re-

pert on the timber position in New Zealand, his Department had pointed out that during the war years price control was i Ifei live, as was demonstrated by the fail, that exported thitler. over which there wa> no control, was (limit'd 7s higher. It had to he I'rmi'tiihered '.hat where several mills were in competitii 11. some efficient atl l some inefficient. the tendency was to fix the price at such a rate as would give a reasonable profit to the inefficient mill, which would he a high profit in the ease of the eflieiellt mill. Mr Wilfnrd remarked that he had

not suggested fixing prices. What he wanted was an inquiry lo see whether the timber iiuiihim* should or should

not he prosecuted. Mr Stewart: We are prosecuting one combine, viz., the llimrmillers, and we prosecuted the coal owners. Mr Will,oil: lint there is im penalty. Continuing. Mr Stewart said that rue cf his dillii lilties was that there were so many "gentlemen's agreements" in existence, and it was imposs!l,|.. in get the proof necessary to ? retire a ciinvietinn. The difficulty wtts great, and the only effective means to overcome ii was State competition. He did not care lo ask the Government to start brickworks and other such things, hut it was the only way to hold di w n prices effectivrly without going through extensive proceedings to prove that a monopoly exists. I’er-on--11!Iv he favoured Slate competition, as wits the ease with lire insurance, than ye i hr.ir ;! i the lilt ile effort of t lying in establish a ease against entnlii lies in a Courl of law. Mr Eorhes said it was quite evident that the Minister despaired pf dealing with monopolies and trusts except by Siate eiiiiipetit inn. That development would, no doubt, he warmly welcomed hv member- of the Labour I’arly. as it meant State S eialism.