TIMBER PRICES

Hokitika Guardian, 30 January 1928, Page 1

TIMBER PRICES

SEDUCTION ON WEST COAST. EFFECT OP DEPRESSION. WELLINGTON, Jan. 27. Interviewed yesterday by a Dominion representative regarding the position of the timber industry, and the possible trend of timber prices, Mr Seed, secretary of the Dominion Federated Snwmillers’ Association, remarked that it was a peculiar thing that public interest was always immediately aroused, and there was usually much Press comment whenever there was the slightest indication of an upward trend in timber prices, even though the prices ruling at the moment might he very materially below those which might have obtained in more normal and prosperous times, whereas a reduction in timber prices was seldom heralded by the Press or even subject usually to iho slightest public comment. In practically all timber producing districts in New Zealand, and more particularly in respect of the Main Trunk region of the North Island, Mr Seed continued, the snwmillers’ current, prices were very materially below the list rates which obtained even lor the greater part of last year; and though prices from the timber sources of the West. Coast of the ‘south Island had been subject to reductions lo meet the fall in values from the northern sources there was now announced by the West Coast sawmillers a further A per cent, reduction in wholesale or stock orders for the Canterbury market. Actually in Canterbury the public were now being offered timber at Christchurch at prices ranging from 37 per cent less than previous merchants’ (or retail) prices in respect of ordinary building timber, and ranging from D per cent, to 33 per cent less in respect of dressed lines.

The depression in the timber industry throughout New Zealand, which had obtained for almost the last two years and which at the moment exhibited little sign of any improvement, had been the means together with the competition from excessive importations of foreign timber, of forcing the wholesale or sawmillers’ prices down to a point where it was virtually impossible for many millers to continue operations on a restricted output without incurring heavy losses, and it was recognised by the millers that ii was in the interests of public economy that the sawmillers organisations should endeavour to bring about the utilisation ol the most efficient sources of production to the fullest extent.

At the present lime the competition for what business was ottering was so severe between millers themselves, and between one timber district and tinother, that the indications were that the wholesale (or millers’) titube: prices would remain at their present low level for probably a somewhat extended period; and if the demand for timber generally throughout New Zealand did nor improve within the next few months., the continued restricted operations ol the country saw mills would again have a very disastrous effect upon the situation in respect to unemployment (luring the next winter. It was to he hoped, therefore, that the outlook would quickly improve, for, oven though increased activity might have a slightly hardening elicit oil wholesale timber prices, it was hotter in the public interests that the mills should he more, fully occupied s<« a‘ : »’> provide their normal avenue of employ iiient- than that the ranks ol the unemployed sftmild be swelled throughout, the winter months by mills being idle or working with shortened staffs.