ADDRESS-IN-REPLY

Hokitika Guardian, 12 August 1927, Page 4

ADDRESS-IN-REPLY

Mr Seddon (Westland). —Mr .Speaker. so many subjects have been mentioned already in this very long debate, and so many phases of presentday problems have been stressed by so many speakers that it is very difficult to speak on a new subject or break new ground. But I think’ it incumbent on. me to refer to one or two matters in connection with my own electorate and bring them under the notice of tlie Government. But, first of all 1 want to offer my congratulations to the honourable member for Napier oil the very able speech he delivered. Listening to him and noting how deeply he delved into official publications and the tacts and figures he cited, one felt impressed that till was right in New Zealand; hut when one listened to the seconder ol the Address in Reply, with his reference to the drift of population into the towns and the difficulties of the farmers, one ielt that all was not tpiite so well, and I think the debate has left ns in the same position, f wish to speak on one or two matters concerning the AY esc C oa>t. particularly the milling industry, and to ask the Prime Minister whether the very serious position that the gold-mining industry on the W e-t ( oast has got into has occurred to him. Heading lhe very latest figures lor last year one is astonished to find how very much the industry has waned. T am sorrv that the Minister of Mines is not present owing to ill health, because 1 wish to impress it upon him that the time has arrived when alluvial and quarts-, mining should K-t every encouragement from the Government, ami to indicate the direction in which such ecouragement can lie given. When the war was on those engaged in gohl-miniug made no demur and carried on their operations as usual, though the price of gold was fixed during the war. Other industries were helped ; other industries got good prices during the war. Init not so gold-mining. Protection is sought for certain industries and it is given to them. We know that since the war tlie cost of material has gone up: yet the industry goes on, and tlie value of an ounce of gold remains Lite same—and has remained approximately tlie same, in fact, ever since 191*2. The cost of mining material has increased in some instances as much as Pit) per cent since before the war, and yet no complaint lias been made. Those figures, .Sir, which 1 will quote from the Mines Statement of last year, will demonstrate to the Government that the whole matter is a very serious one and needs immediate attention. Quartz-mining is mu car ried out in my district. 'There is alluvial mining, and all those who know anything about m-ning are aware that the old crude met laid ol mining by the alluvial process was wasteful, and it was not possible t i secure the liner gold, as can lie done by 'he more modern methods. 'I he latest return in the- Mines Department report -hows that the total weight of gold won in the year 1925 was 001,014 oz ; while tor tho previous year the weight was 035,10*2 ox : sc that there was a decrease in I!>*2s. compared with 1921, ol 31.118 oz. As regards alluvial gold, there was a decrease of 2.812 oz. In gold secured by dredging there was a decrease of 3,299 oz. These decreases, when worked out in values, are more significant-. The value of gold won in 1925 was .£400.012. while the value ;f that won in 1921 was £490,859, so that there was a decrease in 1925 of £30,808. Some of this decrease is accounted for, so far as the quartz i.s concerned, by the improvements in mines that were being effected in the Wniln Borough and the Tunruitgu County, bill the rest is liard to ticcount for; and 1 think it is high time the Mines Department took ibis matter up and gave it some serious thought.. The Mines Department states that the value of gold produced in 1925 was £01,227 less than that produced ill 1924, and it goes on to refer to reduced production at V.'nihi and Taurnnga. The value of gold won ’ y niluvial methods in 1925 was £41.990, and in 1924, £57.923, showing n Sn!ling-off of -Cl 2,873. The value of goid wan ty dredging process was 249,994 in 1.925, and £58.540 in 1924. showing a reduction of £17,510. Now. 1 am going to offer a suggestion to the Government. It is admitted that ail the materials brought into this country for gold-mining purposes have gone up in price, ami we know that during this present session there is going to he a Customs Bill before us for consideration. I think that nil those honourable members representing mining districts should urge upon the Government the desirability of allowing machinery and appliances tor mining into the Dominion at a lesser amount than lias been paid hitherto. | have talked the problem over with people interested in mining, and they sav that the difficulty i.s that wages

have- gone up mid, us T have already pointed out, the cost of material lias increased in some instances by 120 per cent. Xo encourageincnt is being given to these people, and the only solution 1 can see is for the Government to assist in the direction T have intimated. There is another way in which the Government might help along the industry, and that is by encouraging, wherever possible, prospecting in areas wfiOrO dredging operations might he carried on. There are parts of Xow Zealand where al-luvial-mining operations have laid waste great tracts of country. We have demonstrated on the West Const that that waste can be dredged by scientific and modern operations. There is an area at Tlimu. portion of which had been subject to alluvial operations and an American dredge lias been operating on it since 1!>20 and won gold to the value of over £ 100,<>00. That gold has, of course, gone out of tho country. The dredge is still operating and employing a mini her of men. Tho gold won last year by the dredge was worth £35,720. Those who have studied the mining question deplore the fact that so much good coimrr.v is laid waste after mining operations have been performed over it, and also deplore the fact that where uvedgiug has taken place there also the country is laid waste. But it has been demonstrated in Otago that on these diggings, with - attention, orchards have been planted ; and we have demonstrated on the West Coast that where a dredge lias swept over the country it is eminently suited for tree-planting, and where only a few yeas ago it was nothing but a waste there will in future he a valuable asset in the timber. The new process of dredging is by electrical appliances, and that has been adopted on the West Coast. We have Iredges at Greyniouth, at Diingan- . ilk', and the big dredge at Hokitika : and where the Government can assist Power Boards or lornl bodies going in for clrcrical schemes, that power is being used for dredging purposes ; and it is, T can see, by that means only that there will he a revival of dredging in New Zealand. However. T do not wish to touch on that subject at any length, especially its tho Minister is unfortunately absent; but I would like the Govern- 1 ment to bear in mind when the Tariff Bill is under consideration the ndvis- i ability of -assisting the mining in- j dustry as I have indicated—by remit- j ting the! taxation altogether, or mak- ' injj; it as low as possible on the im- j

portation of machinery for mining. We have heard a good deal about dairy-produce control, amt it seems t-o me that the whole problem at Home has been that we have been working on a wrong basis. 1 lie idea of the producers in this country, producing about one-fifth ol the butter used at Home, attempting to control the other four-fifths of the producers! However. i do not intend to speak oil dairy produce control, as that mattei has now been threshed out to such a great extent that every one must he tired of hearing the word “contiol , but what I do wish to speak about is the question ol honey control. It will ho a. little change from the other. lAs the Minister of Agriculture is in his seat, he may possibly bo able to throw some light on the position. The trouble is that a number of men. some of them engaged entirely in this business of producing honey, and others who make the job a subsidiary one. complain that the manner in which the Board lias controlled the sale o! honey in the Old Country lias operated unfairly to the producers out here. 4 asked the Minister a question about chis matter last year, hut f do not know the position at the present time. There is a. great deal of uncertainly as to what tire really the facts ol the case; but I am assured that a good many returned soldiers arc engaged in this industry, and many farmers are getting a fair remuneration from it. i am assured that unless the producers can get fid per pound for their honey they will have to go out of the business. That may or may not he so; but I am assured on very good authority that that is the position. It fins been suggested, and the suggestion seems to me a good one, that the Commercial Branch of the High Commissioner's Office should exercise control of the sale of our honey. That branch could avoid the overloading ol markets, and could control and steady the prices. What happened in 1924 was this: A certain quantity of honey was exported to the Homo country and sold there, and taking ail the expenses—freight, insurance, wharfage charges .commission, etc.—the cost of sixty cases averaged 9s llhl per case. That was the average cost of sending that honey Home to the London market. In 1925 forty-two cases averaged Cl Is 7d per case: sixty cases averaged 9s lOd. And when this matter was gone into and details obtained, it was admitted that £2O was The cost of advertising and 5 per cent or an increase of 100 per cent was made in the commission. Now. Sir as this matter concerns so many tanners who go in for honey-production apart from their other business 1 should like a statement from the Minister, because n good deal of doubt exists in the minds of the public who arc interested in it. This controversy lias been raging for some lime, atld some letters have been appearing intermittently in the papers; hut it is difficult to gel any definite opinion on the matter, because the replies are not made for some tnonlbs afterwards. 1 lie Minister could ease the minds oi those interested by making a statement. I speak feelingly on behalf of the people who have gone in for this industry and found it an unpayable proposition, especially when they had to pay so much for advertising and commission. We are told that if the Now Zealand honey is not kept up to the proper standard, and its excellence maintained and preserved from being mixed with honey from other countries. there will he no improvement in tint position. However, i hope the Minister will make a statement about the position. There is just one other subject T would like to refer to for a minute while T. am on my feet. I have been wondering. Sir. whether it is any use battling away year after year and month after month over this question of tiie importation of foreign timber into this country. It is very interesting and encouraging to find that members who have not so many saw- . mills in their district ns T have, but who are vitally concerned, have tntfcn up this question, and are going to help us in (lie cause. This matter was submitted to the Prime Minister and the Minister of Customs; and we got fair wovds, but nothing done. If seems to me that /Parliament is impotent. and the Government has not very much initiative when it comes to a. question of pufTing this matter right. Early this year things got to such n pass that it was absolutely nore.ssary for those members who were interested to bring the matter before the Government, and representations were made and the ease stated on behalf <1" those who were interested in the timber industry; hut as yet nothing has been done. We know the reply is that the- matter has boon referred to a Commission; we know the Commission is still sitting; hut we do net know when the recommendations of the Commission will be submitted to this House, and whether some alteration may or may not lie provided for in the tariff. However, it was encouraging to hoar the honourable member for Pahiatua suggest to the Gov-

eminent tlint tliey should eneaurnge the Vise of our own woods in New Zealand. and that it Tie a recommendation to the Advances Department and other Departments to specify the use only of New Zealand timbers. If that were done in the case of the Adyantes Department,, the Railways Department, the Hospital Department, and other Departments, we would not find sucli a serious rival in the imnorted article. Wo know. Sir, that tho question of unemployment is very rife in New Zealand at the present time, and a good deal of that lias been aggravated by so many of the men who were working in < l '” sawmilling industry being lovrcd out of work by tho present slump. It is very difficult to compute how many men there are. but. on the basis ot many of the mil!" shut down and the average that were employed, we compute that the importation of foreign timber has been the cause of putting out of employment 1)03 men. I will work out the figures later oil and submit them for the consideration of the Government, if they so desire. We realise that, apart from the slackness in the mills, the cause of so much slackness in the industry has been the importation of so much imported timber. e know that this competition by the imported article is seriously affecting our local industry, and that the industry is struggling unaided against the foreign eompeti- • tion. The Minister, and any one who

knows anything about the industry will 1 realise that the timber industry has been severely handicapped during the last few years. Railway freights have been increased, and from certain parts of the North Island the railway freight to Auckland or Wellington has gone up to os 9d per 100 superficial feet. In addition to that, the Forestry J)o----parment, which has been established in recent years, has put on rates, and these all make it more and more difficult for those engaged in the industry to make it pay. We all know—and this is a matter for the consideration of the Forestry Department—that only 15 per cent of the timber cut in our bush is heart timber, 85 per cent being o.l>. timber. Now, we also know that by reason of the importation of. and competition with, foreign timber 85 per cent, of our o.b. timber is practically wasted. This is a evry serious matter which is seriously handicapping our timber industry to-day, for it does not pay to send that o.b. timber to our distributing ports, because it cannot compete against the imported timber from America. Wo know that 50 polecat of the imported timber comes from the Tinted States, which puts up a very high tariff wail against any exports from this country. In regard to this 85 per cent o.b. timber, we are told by the Government that when our present timber is cut out it is to lie replaced by timber which is being grown ill the different plantations throughout New Zealand, which timber. we are assured, will arrive ill maturity when the trees are between twenty-five and thirty years old. But we know that that timber maturing at twenty-five or thirty years can lie no better than the 85 per cent of o.b. timber which to-day i.s being discarded. So, what profit is there to proceed with this policy of planting trees, which are only going to take the place of The 85 per cent of o.b. timber at present discarded ? The matter requires to lie thoroughly considered by the Forestry Department, because we are assured that that o.h. timber will last forty years when treated and used; yet at the present time if is being discarded on account of the competition with imported timber, and on account of the increased railway-freight charges. Today I was tit some pains to ascertain the present position of unemployment in respect of sawmill workers on the West Coast, and I find that from 7th March to 30th April the total sales output from fhe mills there amounted to 3,8(57,000 superficial feet, which is only 2(5 per cent of the normal cutting capacity of the mills. The mills represented in that production arc the property of thirty-three firms, but some of those firms own more than one mill. The sales production at the present time is only 20 per cent of the cutting capacity of the mills. The Hon. Mr Downie Stewart.— Does that mean as compared with the average for the last few years? Mr Seddon. —Yes, it. means that the present safes production is equivalent to 2(5 per cent of what the mills could produce. The New Zealand sales output was only 2,149.000 superficial feet, or only 17 per cent, of the normal output of the mills; when reduced to figures it means that there is only work for the mills oil one day per week—or. in other words, that five out of every six mills have to lie closed down. That is the position obtaining there to-dav. Some mills are working only intermittently, and, there being no work handy for the men on the oildays, great hardship ensues. I should he very pleased, therefore, if the Government could in any way expedite their consideration of the problem. The machinery of Government is, we know, very cumbersome : and if we have to wait until the Commission prepares its report, a Bill is drifted, and Parliament considers the matter, alter hearing numerous deputations, f am afraid there will be no redress until Christmas-time. I make this pica on helm If of the industry, because I think the Government realizes i iiat tile industry formerly employed over ten thousand men, and distributed over £2.000.000 in wages. It paid the highest average wage paid to any employee —that is, £220 8s lOd per annum—and surely these considerations alone shoui'd

warrant (he Government in giving its innneilinte attention to the matter. 1 tin not hesitate to bring tin* matter before the House prior to the report of the Commissioners living rereived, because 1 think the matter is very serious—so serious that we should deal with it as soon as possible. There is another way in which the Government eould take the matter tip. We find that since tile State forestry Department canto into operation they commenced imposing royalties. Tn 1023 that Department received £37,162. In 1026 tlie royalty received was Cl 13.660. If the men are put out of employment, and cutting operations cease, all that royalty will lie lost to the Stale, in addition to which the amount paid to tile Railways Depatrment in respect of freight will also he lost. Timber from the United States—and 50 per cent of our imported timber conies from there —comes direct to our distributing ports, and sol'd in those ports. Thus the railways again lose the freight. That is another reason why the Government, as a Government, should consider its a,ttitude,..sjnl position in regard fo the local industry. To realize how serious and threatening the menace from competition with imported timber is becoming, the Minister has only to consider the returns to see how the amount of timber imported year by year is increasing. In 192.3 11.585.404 superficial feet were imported into this country, of the value of. £176,144. There was an increase of almost 100 per cent in 1921, when the importations reached 22,182.904 ft. In 1925 they increased to 37.572.735f1whi1e in 1926 they amounted to no less than 43,557,661 superficial feet, the value of which was £457.826. During that period the importations I have referred to meant so much displacing of local timber, so much dislocation of local industry, resulting in putting many men out of employment. That phase of the matter undoubtedly requires the serious and earnest considerations of the Government. hot me emphasize the importations for 1926—amounting to. as I-have stated, 43,557,661 superficial, feet. Taking the average number of 1 hands workoing at a sawmill and ns- i Miming it to he twenty-one—which it ‘ is—and the average production of a 1 mill being 1.000,000 ft., we find that I owing to last year’s importations of foreign timber 903 men have been put out of work. That is a fair computation. and T give it to the Minister for his consideration. I make no apology for bringing this matter before the I House from time to time. My experience was that we got very fair words 1 from tlie Minister and the Tight Hon. the Prime Minister when they received the deputation to which I have referred. but T think (he trouble is that there is no machinery to meet a crisis =uch as this is. I do not like to suggest that there is a lack of initiative on the part of the Minister of Customs, hut 1 should like him to make some determined effort to look after tlie industry—to foster it. and to give it some protection against the rivalry of the imported article. T wish tn bring under Hie norice of rho Minister in charge of the Tntirisl Department a suggestion which has been made over and over again—that the South Island is not receiving the attention from the Government that is given to the North Island in regard to inducing the flow of tourist traffic to visit our scenic attractions.

Tiiis complaint lias been repeated so often that I think the Minister should contradict the assertions of neglect if they arc not true. There is no denying the fact that as soon as tourists arrive in this country they nearly all make for Rotorua and other places in the North Island. We can possibly excuse the Government for assisting these places, because they are more or less State-owned. There are. however, places in the South Island little known and little advertised. Tima and again one meets tourists who tell us they had no idea, until they visited them, of the attractions of the Buller Gorge, and of places around Grcymouth and Hokitika, and further south. Probably the publicity agencies of the Government will ho the means of properly advertising these places, and having them put ou ilie picture-screens : and the more that can lie done in that direction the hotter it will ho for the whole community. 1 hope the question of helping the mining industry, especially in the form of dredging and quartz-mining, will not ho overlooked, and I hope that when this session—which we arc told is going to he a most important session, and for which we are promised a liig legislative programme—comes to an end. wo siiai'l find that something has been done for the two industries 1 have particularly have mentioned.