WELLINGTON NEWS

Hokitika Guardian, 23 January 1929, Page 5

WELLINGTON NEWS

I-SmiUL To The Guardian ]

NEW ZEALAND TIMBER INDUSTRY.

WELLINGTON, Jan. 21

It will be remembered that some time ago a proposal was submitted by responsible men in the timber industry to establish a Timber Industrial Efficiency Board which was to have power to investigate all matters relating to milling and marketing, and to direct what steps should be taken to ensure greater efficiency, so that timber required to meet the national demand may he supplied in as suitable quality and with as little waste as possible. It was held that that a cordial co-operation of those engaged in the industry it was regarded as essential to the success of any such scheme that except 65 per cent of the votes were cast in its favour the Board could not come into existence. This body was to.consist of twe persons representing the Government, four representing the sawanillers and one representing sawmill employees. Its main functions were to be discharged by inspectors, who were to have power to inspect the properties, works and books of millers.

The chief improvements aimed at were in the direction of a uniform grading of timber and the reduction of expenses by a uniform system of costing and other accounts. Of course nothing has come of the scheme although a Bill was introduced in Parliament. It is perhaps a very good thing that the proposal did not succeed for though it may have been beneficial to millers, its operations might ultimately have proved inimical to the public welfare. It is difficult to see why it was considered necessary to have two representatives of the Government on the Board, and why inspectors should be authorised to inspect accounts, etc. Had the scheme gone through as proposed and the inspection shown that generally costs could not he further reduced, then an excuse could have been found for further increasing the duty on timber to eliminate foreign competition as far as possible and thus protected the prices of local timber could be raised and the timber companies would be in the happy position oif paying good dividends to the shareholders. The trouble with the sawmilling industry arose through the steadily increasing wages awarded by the Arbitration Court, which is in no way concerned with the economic effects Increased wages may have on the industry itself or allied industries. Millers passed on the wage increase to the public, but there was a point at which the public rebelled and foreign timber was imported in ship loads and the local milling industry was murdered, killed by Arbitration Court Awards and the supineness of the trade. It is not. more compulsion or Government interference that is wanted but co-opeiation and co-ordination in the industry. There is too much overlapping and much of this could he eliminated. Reforms of whatever character they may be must come from within and not be grafted on the industry by a paternal Government. The moment the industry is bound up by red tape then it will be the public will suffer. But the industry ought to show some revival presently, indeed it is said that the germs of improvement noticeable. The Advances Office is to lend more freely to settlers and to home-builders, and efforts are being made to overtake the flood of loan applications that have accumulated. The office has been furnished with additional capital, and home-builders and others will need considerable timber which the local industry ought to be able to supply at a reasonable price. If the Government is to interfere with the industry it should he in the direction of investigating the trading rules of the Sawm filers’ Association, and the effect of Aribtration awards on the industry.

There is obviously waste in the industry, otherwise the millers would not be anxious to obtain the sendees of Government inspectors to find out where the waste lies and get rid of it under Government compulsion. The Arbitration Court it will be found, is the burden that the sawmilling industry as well as other industries have to carry. Employers and employees should study very colscly the report of the British Economic Mission which recently investigated and reported on Australian conditions. In the opinion of the Mission no case should come before the Arbitration Court unless there is a certificate that all efloits at an amicable agreement outside the Court have failed. The Aribtration Court, according to the Mission, is a waste of time and money.