TUBER SUPPLIES

New Zealand Times, Volume XLVI, Issue 10606, 3 June 1920, Page 7

TUBER SUPPLIES

N.Z.B.S.A. RESOLUTION BOARD OF TRADE OX THE PRESENT POSITION. SCARCITY OF SHIPPING. The following statement with reference to the resolution passed by the Now Zealand Returned Soldiers’ Association Conference on Tuesday in regard to th© timber supplies of the Dominion has been forwarded to Dr Boxer (president of the N.Z.R.S.A.) by the secretary to the Board of Trade (Mr J. W. Collins): — ‘•Dear Sir,—From the newspapers •this morning the board notes that a discussion took place at the meeting of your association yesterday, and that a resolution was passed as follows : ‘That, in the opinion of this conference, the present - shortage of house property, the excessive prices thereof, and the scarcity of building operations, is largely the direct result of the wholesale exportation of building timber by most of the large timber corporations throughout New Zealand, and that the Government bo urged to stop such exportation and to commandeer all available building material for the erection of homes.’ “I am directed by the board to draw yonr attention to the fact that, on August 19th, 1919, an Ordor-in-Council was gazetted prescribing the maximum quantities of rimu and kauri that might be exported front New Zealand during proscribed periods, a percentage reduction being made in each succeeding period with the object of ultimately reducing export to a minimum. Under this Order-in-Council no timber could be exported without, a permit being issued by the Board of Trade. “After considering the claims of the sawmilling industry to export, in conjunction with the requirements of the New Zealand market, the board authorised the issue of permits in respect of rimu, for the period July Ist, 1919, to March 31st, 1920, amounting to 20,390,000 ft, and in respect of kauri, for the period October Ist, 1919, to March 31st, 1920, amounting to- 3,267,000 ft. Complete returns now to hand of the extent to which these permits were operated show that the total quantity of rimu exported during the period above referred to was 8,503,000 ft, and of kauri 3S4,OCOft. The whole of this export has taken place from the West Coast of the , South Island and North of Auckland mills. As showing the effect on the export trade of the control exerc'sed by the board, I quote the following figures in regard to the export of nmu and kauri during recent years:----Year. Rimu. Kauri. * ' ft. ft. 1916 ... 15.312,000 12,411,600 1917 - ... 22,167,000 14,047,628 1918 ... 30,391,000 7,707,411 1919 ... 8,503,000 334,000

(9 months) (6 months)

“Notwithstanding this reduction In export, the output of timber from sawmills in New Zealand has been very materially increased, thus providing for the New Zealand market a much larger supply of building timber than, has been available at any time in the history of the Dominion. All export permits issued hitherto have been subject to a reservation that they miight he suspended by the board at- any time should any user of timber in the Dominion be unable to obtain a supply and be willing to avail himself of the timber destined for export. “The whole of the export of building timber at the present time is taking place from the West- Coast ot the South Island and from t,he extreme north of the Auckland province. The West Coast sawmills, if shipping were available, could place a large proportion of their output in Wellington and Christchurch, but the Nortn of Auckland mills, especially the Hokianga mills, are called upon to pay a very high rate of freight to the New Zealand market, and at the present time shipping from Hokianga to New Zealand ports is practically unobtainable. Should, however, the board be able to arrange shipping from Hokianga to any New Zealand market, the timber produced in tnat district will become available for use in New Zealand. In fact, during the last few days arrangements have boon made with the Public Works Department to place an order for a substantial amount of timber with the Hokianga. mills, this being possible, os arrangements could be made for the Government steamer to lift the timber.

“The present abnormal demand tor building timber in the North Island has resulted in the whole of the output of the Main Trunk mills being absorbed into the district between New Plymouth, Wanganui,* Palmer' ston North, Napier,, and Auckland, with the result that Wellington is almost entirely dependent on the West Coast of the South Island for its supplies. The difficulty hcr t o lies wholly in. the shortage of suitable shipping. “The statement reported ns haring been made by Mr Harper, one of the delegates to your conference, is substantially correct, as far as the position on the West Coast is concerned. All the shipping at present available from the West Coast for timber to Now Zealand ports is being fully utilised, and should it ho found possible to make further space for timber available, the West Coast sawmillers ■will supply. , ■ .» "In regard to prices, the hoard’s accountants recently investigated the sawmillers’ costs of production, and the board has fixed prices for timber in New Zealand without taking into consideration the fact that much hi "tier prices can- be obtained by export The prices arc fixed purely on tho basis of cost, to allow a reasonable return on the capital invested in tho industry. “As illustrating tho difficulties of the position. 1 am directed by the board to point out that some of your own members have recently acquired sawmilling areas, on the West Coast of tho South'lsland, and have commenced operations., and they naturally fool aggrieved at being compelled to place their output on the New Zealand market at New Zealand prices when they could obtain a much higher price by export to Australia. "The position in regard to the shipping difficulty experienced arises from tho fact that New Zealand is a ooal importer from Australia, and timber, especially from the West Coast, provides suitable back loading for tho coal boats. If this back, loading were not available it is obvious that the cost of Carriage of coal would he considerably increased.

“Considering all the circumstances

of tho case, it is difficult to soo what more the Government could do to restrict export without inflicting considerable financial loss on tho sawmilling industry, and probably causing unemployment. Although, no pointed cut above, tlic production of tain has ciouEdcriibliv increased in Now land, it has not yet reacned its maximum on account of the fact that this industry along with others is feeling tho effects of the acute labour shortage For instance employment ci.ula bo found for double the number of men in somo districts. ‘‘You will see from the above that two facts aro clearly deducable-—(1) That the pioduotion of timber at present is greater than afc any too m tbo Dominion’s history; and (2) that the export of building timber has practically ceased, except from Hokianga and the West Coast of tbo South Island, and that any further rcstnotion •of export could not result in making more building timber available for Now Zealand unless more shipping could bo provided. _ . . “Tho Right Hon. the Pnmo Minister, in a recent statement, made the information contained herein known to the public, but possibly tnia not have come under the notice of tho members of your association.”