TIMBER INDUSTRY

Hokitika Guardian, 31 December 1931, Page 3

TIMBER INDUSTRY

OVERSEAS COMPETITION. i , *i 21 OUTLOOK FOR FUTURE. LOCAL MARKET CONDITIONS. The opinion that, the exchange position, together witli price, readjustments, would combine 1 tu.enable local timbers to compete more effectively with imported woods than at any other time during tin* post-wair pm iod is expressed in the annual report of the State Forest Service. The most promising feature of the present situation ,is held to he the decline in bui.duig costs. “A review in the annual r, port for the year (inded March 31, 1930, indicated that I'rom. a study of the export and domestic markets, including an investigation into the inter-relations oi the housing ratio and timber consumption the industry would be faced with a decreased demand for the period now under review,” the report says. “At no time, however, was it- anticipated that the decrease in demand would develop either as soon or as rapidly as has since occurred, and the phenomenal decline in building activities is almost wholly responsible for this position. Until public confidence is restored it is improbable that building activities will return to normal. ‘‘The most promising feature of the present situation is that, in sympathy with the general price decline, building costs are falling appreciably and will probably become established within the very near future, when the general wage question is settled. Having foreseen this development, various institutions, firms and individuals who have suspended indefinitely their buUding activities may reasonably be expected to revive them, thereby not only improving tile demand for timber but also recreating employment in numerous allied industries. “A somewnat simlinr situation exists in,regard to houses. With the supply much in excess of the demand in most centres, there has been a general exodus from old-fashioned into more modern houses. Also of some significance is the possibility .of modernising old-fashioned houses. As in all periods of rapidly falling consumption foreign timbers assumed during the year 1930 a more serious effect than usual upon the demand for local timbers. This is due to the invariable delay in their importation,' since merchants must, contract considerably ahead for their requirements—sometimes as much as a year.

“Thus the imports during 1930 represent commitments based upon the optimistic note which' pervaded building and constructional circles at the end of 1929, before tlie present depression developed to any serious extent. Already for tile first three months of 1931 imports Reflect the'.serious .decline in building activities, ' amounting' to only five million feet b.m. as compared witli 17 million feet b.m. imported duririg the corresponding period of 1930, and it is estimated that the current year’s totals will be the lowest since 1923, wlien ,only 40 million feet b.m. were imported as compared witli the peak record of 82 million feet b.m. shipped into New Zealand during 1925. During the current year, therefore, it is confidently asserted -that the exchange position, together with price readjustments, will combine to enable the local timbers to compete more effectively with the imported -.woods than at any other tune during the post-war period, ‘‘As to the, Australian export markets, practically the whole of the contraction in demand was accounted for by white pine, the carry-over from the heavy exports in 1929, combined with the general depression during 1930, resulting in purchases being strictly limited to imihediate essential requirements. At the conclusion of the current dairying season, however, it is estimated that stocks will have been liquidated, if they have not already been done so, to a point where ordering for next season’s requirements is necessary, and an early improvement is anticipated. Rimu exports, amounting to 3ij million feet b.m., actually displayed a slight improvement as compared with the previous , year, a, trend which may reasonably be expected to continue, since under the existing tariff and with a return to. normality there is a potential market in the Commonwealth for 20 million feet b.m. of this sepcies per annum.”