TIMBER TARIFF

Hokitika Guardian, 6 November 1929, Page 7

TIMBER TARIFF

MERCHANTS NOT CONSULTED. “It is invariably the practice of the Government when contemplating legislation affecting any particular industry or organisation to consult those concerned in those industries or organisations. When milking changes recently in the tariff on imported timbers, however, while some organisations were consulted, the timber merchants were not called upon to express their views so that the object aimed at—the assistance df the New Zealand timber and sawmilling industry—was not achieved. Remedial measures are to he sought.” The above statement was made in Wel'i'iurton by Mr .1. 15. Reid, who a few days ago was elected president- of the New Zealand Timber Merchants’ Federation. M.r Reid was strongly of the opinion that when legislation wa-s contemplated especially in industrial matters the Government should consult all those interested, and this was a view upon wlv'-h the federation was most emp’snti" in regard to the changes mado in the tariff on imp-rled tin Te-rs. On fbe other hand, Mr Reid deprecated the idea of the Government having nominees on the governing, or controlling horUes of any industry, for it was a violation of the principle that the Smte slmitld not interfere in business and indulge in private enterprise. The timber merchants were not consulted when the last tariff changes were m°dm Had they been asked to state their views they coufil have shown the Government how it was possible to bring in a tariff which would not have increased the cost of build- 1 ing and vet at. the same time would have assisted the New Zealand sawmiling industry. The sawmillers were given the opportunity df placing their side of the case before the Government which then put on an increased duty, for the purpose of trying to help the sawmilling industry. And rightly so.

COST OF BUILDING RAISED “Rut has that object been achieved ? Mr Reid asked. He quoted redwood hoarding, on which the tariff had been increased from 2s to 5s per 100 super feet, and said that just as'much redwood was Jie-'ng sold with the increased tariff as before, so that the New Zealand sawmiller was gaining no benefit and the cost of building had been increased by the additional 3s pel' 100 super feet, on the weather boarding. The weak point of it was that in putting the duty on weather boarding the Government failed to nominate a New Zealand timber to take its place. Attention was drawn to the fact that the Government specifications—more .particularly iti tile North Island—were for heart timbers 'or redwpod. Thefd was, said Mr Reid, a New Zealand timber which was equally as good as redwood, and would give equal if not bet tier service. That was heart rnatal, hut it was 11s per 100 super foot dear,er than redwood. Furthermore, there would not be nearly enough heart mntai to fill the hill if it were generally used for weather boarding, as the existing supplies were readily absorbed and were heavily used for flooring. WHY COSTS ARE HIGHER. Mr Reid indicated why the cost of production in New Zealand was higher than in Canada or the United States. A mill might be in existnnee and a new area of bush two miles away might be taken in. It would probably cost- £2OOO to construct, the railway for transport to the mill in whichever country it was but the important factor was that in Canada or the United States they would take 100,000 or 150,000 feet of timber per acre off the bush, whereas in New Zealand it would only he round about- 10,000 feet. Further the great percentage of the timber in America j and Canada would he heart timber probably 75 per cent., whereas in New Zealand the heart timber would not amount to 25 per cent, and in the J South Island was much less than that. It would benefit tremendously if they could help the miller and the merchant to find an outlet for the 0.8. or second grade timber at a price which would at least return the cost of producing it. Then there would be a reasonable chance of effecting a reduction in the price of heart timber. READY TO ASSIST. The industry carried on by the timber merchants in New Zealand wa-s a very important one, said Mr Reid and was one in which an enormous amount of capital was invested, employing a great number of men. They were entitled to be heard when any changes in tariff or other legislation affecting them was contemplated. “We could give the Government valuable advice from time to time in connection with the industry,” concluded Mr Reid. “We are ready to give every encouragement possible to the use of New Zealand timber for all purposes. Even now if we are taken into consultation regarding timber tariffs we can show where it is possible to increase the use of New Zealand timber without increasing the cost of building.”